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  • Casual Dining Sector Offers Up Compelling Plays Like Ruby Tuesday [View article]
    At 22 years old I didn't pay enough attention to balance sheets either.

    Age and experience are great teachers.

    After 30 years of doing this I find excessive corporate debt [especially in a credit strapped economy] can be a deal-buster.
    Apr 16 08:40 am |Rating: +2 0 |Link to Comment
  • Casual Dining Sector Offers Up Compelling Plays Like Ruby Tuesday [View article]
    Ruby Tuesday may recover and go on to big gains if everyting goes well. However they had violated their debt covenents and had to get waivers from lenders recently to avoid bankruptcy. Unless things get better quickly this is still a big risk.

    Your contention that they were able to increase earnings during the bad times is just flat-out wrong. They had a terrible year and have not yet shown signs of a turnaround in EPS.

    They cut back drastically on their new unit openings to conserve cash in this very bad environment for their industry.

    I like out-of-favor stocks in unpopular industries like this.

    I'd rather stick to the clear survivors like CAKE< CBRL< EAT<DRI<RUTH<... then take a shot on Ruby Tuesday where the penalty for failure is death rather than just delayed recovery.
    Apr 16 08:37 am |Rating: +2 0 |Link to Comment
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