Cramer said that private equity has a ton of money tied up, with Goldman Sachs alone raising $19 Billion. Cramer said they can borrow up to 10-times and they are willing to pay big premiums. He thinks Lamson & Sessions (LMS-NYSE) is the one they should pay $35 to $40 to acquire it. His private equity master plan works, but he says he still only wants to look at companies if they make sense. If it was valued like PW Eagle that just got a bid it would be valued at $35 to $38 today. He said it didn’t even move when LMS hired a banker. LMS only has a $445 million market cap and Cramer thinks this should be rolled with American Standard (ASD-NYSE) now that they are selling the plumbing business; and then he’d buy the Home Depot building and supply business. Cramer thinks this would be a big powerhouse company that would be a vertical integrated company that could easily be public again in 3-years.
Jon C. Ogg
February 13, 2007
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