Cramer's Private Equity Targets (April 26, 2007)

Jim Cramer was giving another private equity target on tonight’s MAD MONEY on CNBC, but it turned out to be two picks rather than one. He reminded not to speculate on ones where the fundamentals are bad nor ones you wouldn’t want to own on their own. Tonight Cramer’s two picks are in retail: Ross Stores (ROST) and TJX Companies (TJX).

Ross Stores (ROST) is one he thinks has a great balance sheet that can be bought on all borrowed money and their fundamentals are good.  Operating margins are down 250 basis points because of execution and systems, but they are starting to get better.  They can fire workers and close the bad stores down to make this do well.

On TJX (TJX) he notes that they are the best place to buy solid brands on clearance.  They also have some other brands that generate cash.  These are both his key picks in retail, and he’s been positive on these before.

Jon C. Ogg
April 26, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.