Cramer’s “private equity buyout target” tonight was Cheesecake Factory (CAKE) on Mad Money on CNBC. He doesn’t care that the company is up 10% after earnings and he doesn’t think it is too late to get on board: likes that the cash flows aren’t living up to their potentials; thinks this would be easy to turn around; they can actually raise their prices because they are low for quantity and quality versus elsewhere; privateer could bolster its supply side; could bolster a little more brand promotion via advertising and store additions would be in the works; new management team could actually close their underperforming stores. Besides looking attractive to private equity, the CEO is the son of the company’s founders and the shares should be a lot higher.
Jon C. Ogg
April 25, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.