Eric Fox

Casual Dining Sector Offers Up Compelling Plays Like Ruby Tuesday

I wouldn't read anything sinister into the comment. I would take it at face value - they are talking to the banks who are probably wanting a larger spread when they roll the loan given the risk situation.

Casual Dining Sector Offers Up Compelling Plays Like Ruby Tuesday

This is what management has to say about the debt on the call:

"We are working with our lenders to modify our debt covenants. We have agreed in principle on the amended terms and are currently working on completing documentation."

Casual Dining Sector Offers Up Compelling Plays Like Ruby Tuesday

Daniel....here is my favorite quote from Cramer. It is from a speech he made in 2000:

"We don't use price-to-earnings multiples anymore at Cramer Berkowitz. If we talk about price-to-book, we have already gone astray. If we use any of what Graham and Dodd teach us, we wouldn't have a dime under management."

The speech was called "Winners of the New World" and here is the list of the ten stocks that he was buying then:

724 Solutions - SVNX
Ariba - ARBA
Digital Island - ISLD
Exodus - EXDS
InfoSpace.com INSP
Inktomi - INKT
Mercury Interactive - MERQ
Sonera - SNRA
VeriSign - VRSN
Veritas Software - VRTS

Have you heard of any of them?

Casual Dining Sector Offers Up Compelling Plays Like Ruby Tuesday

Bernard....thanks for the clarification. The quote I posted from management must be for the balance of fiscal 2008.

Casual Dining Sector Offers Up Compelling Plays Like Ruby Tuesday

To Bernard222...during the last conference call RT announced the following capital plan:

19 Company-owned Ruby Tuesday openings for the year.
15 to 20 franchise openings for the year.
$60-$65 million in capital expenditures for the year for new restaurants and routine capitalized improvements at existing restaurants.
$50-$55 million in capital expenditures for the above-mentioned remodeling of Company restaurants during the fiscal year.

Where did you get your no new store openings and $20 million number from on CAPEX?

Casual Dining Sector Offers Up Compelling Plays Like Ruby Tuesday

Good post except for one thing:

"Graham and Cramer probably managed portfolios with no relation to each other and what is important in combining advice from 2 great investment managers..."

Don't ever mention Cramer in the same sentence as Ben Graham. Cramer reminds of a quote I heard in a movie a long time ago

"Learn nothing from that man except how not to behave."