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

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By Douglas A. McIntyre Published

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.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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