Daniel Nathel

Casual Dining Sector Offers Up Compelling Plays Like Ruby Tuesday

what do you think that implies?

Casual Dining Sector Offers Up Compelling Plays Like Ruby Tuesday

Paul,

I miss spoke if I said the EPS was rising. What i was alluding is what Marguerite Duffy, Ruby Tuesday CFO,said during the conference early this month. She mentioned that their restaurant margins beat their expectations to over 18%. She continued to say that they increased their checks, decreased their COGS and cost of payroll.

That does not translate directly into earnings because of the many casualties on their balance sheet and I should have only used the word profits to describe their operations.

Thank you for the correction.

Also, I don't avoid the balance sheet but, I am no where near as fluent at reading it as I would like to be. Sometimes I am not sure if that is just me or if they are just out right deceptive, but that is definitely something I will work on and pay closer attention to in the future.

I have heard a lot about issues of corporate debt recently, one of the most prominent is its unavailability. Another issue I will pay closer attention to in the future.

Thanks for the advice.

Casual Dining Sector Offers Up Compelling Plays Like Ruby Tuesday

Sorry for all the Cramer defense. The only people who are out spoken appreciators of him are callers on his show, and I think I just went off the topic of your comment to highlight the contrary. Most importantly though your comments are well taken.

Casual Dining Sector Offers Up Compelling Plays Like Ruby Tuesday

Eric,

Your point is valid, well taken and those 10 make me even more of a skeptic.

But never having the experience of working in a professional investment house like yourself, any advice I can get is better than none, including yours. And though Cramers advice alone doesn't go far, he brings up stats in one company that I never thought to look at which help me to analyze other companies.

On top of that looking back at the comparison I made between the two of them, Cramer's advice is actually a derivative of advise that Graham showed favor to for the defensive investor in "The Intelligent Investor." (sorry, I had to use them in the same sentence for that one) I can't recall the lady who did the study or the exact name of it but I think it was somewhere along the lines of Dollar-Cost averaging, in which you disregard the current market level and inject the same amount month to month, buying less when prices are high and more when prices are low. Graham did not oppose such a strategy and actually highlighted its success.

Casual Dining Sector Offers Up Compelling Plays Like Ruby Tuesday

I disagree with you in terms of Jim Cramer. If you actually watch Cramer he constantly tells you how important it is to do your own research because his briefing is not enough, but if all you're seeing is his highlights... don't ever expect to here that. Not that I am accusing you of that because I don't know about your style.

Cramer brings out great stats and fundamentals in the few seconds he talks about a company, but a few seconds can't compare to the days, months and years people along with Jim spend analyzing stocks.

I defend him because even though personality is a reason many people watch his show, there is more to it. He brings out factors that you wouldn't think to look for if you haven't had the experience and he offers it day to day. You can learn a lot or at least have a foundation to begin learning off of from watching.

On the contrary I am a skeptic when he, or any one for that matter gives me investment advice, so don't mistake me for a Cramerican and because it can't hurt I won't use his name with Grahams again unless I have to. Sorry Jim.