Banking & Finance

Cramer's Got 2 More Financial Service Buyout Picks (TSS, ADP, ADS, BSG, FDC, SNV)

Cramer came on MAD MONEY saying he thinks that Total Systems Services (TSS-NYSE) is one that can be taken over next in a sector and $40.00 would be a fair price based on Alliance Data prices.  Synovis (SNV) is the parent and Third point is now being an activist investor.  The earnings growth of 18% is reason enough to own this.  The only issue he has in the sector is that Automatic Data Processing (ADP) might be acquired first.  Alliance Data Services (ADS) was just acquired, First Data (FDC) is going private, and even Bisys Group (BSG) got gobbled up.  We’ll see, but investors need to keep in mind that some of the premiums in this sector have been pidly.  ADS was nearly a 20% stock jump, but BSG was a horrible low-premium buyout.

Jon C. Ogg
May 21, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.