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long term investor , been trading online for the past 12 years .... Bachlers degree in field of science , male 35 . lives in NJ . Recently my website was featured on CNBC
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  • Why Is Ruby Tuesday Stock A Buy Now ? 0 comments
    Feb 12, 2012 11:13 AM | about stocks: EPS, RTI, RT
    Ruby Tuesday, Inc. (Public, NYSE:RT) Outlook Still Uncertain ?
    The company also continues with its expansion plans .Ruby Tuesday, Inc. (Public, NYSE:RT) Ruby Tuesday, Inc. (RTI) develops, operates and franchises casual dining restaurants in the United States, Puerto Rico, Guam, and 13 other countries and regions under the Ruby Tuesday brand. The Company also owns and operates two Wok Hay restaurants. At June 2, 2009, it owned and operated 672 Ruby Tuesday restaurants primarily in the Northeast, Southeast, Mid-Atlantic and Midwest of the United States. As of June 2, 2009, there were 229 domestic and international franchise restaurants located in 27 states primarily outside the Company's existing markets primarily the Western United States and portions of the Midwest and Northeast and in the Asia Pacific Region, India, Middle East, Puerto Rico, Guam, Canada, Iceland, Eastern Europe, and Central and South America. On March 18, 2009, the Company acquired a Ruby Tuesday restaurant in Rockwall, Texas from a traditional domestic franchise
    The same store sales increase was the best for the company in the last 3 quarters which indicates its strategy for coping with the global recession appears to be working. This chain is stepping up from its peers , by providing a nicer dining experience at about the same cost. During these challenging economic times, expect (RT) to increase market share and margins. This time (RT) management has hit the bulls eye . (RT) will recover, they provide a variety of organic and natural foods as part of their dinners and salad bar that I think as the "Green" movement continues, more people are likely to go there and eat.

    The casual dining chains have been in a tough position during the last several years. But they have cut costs, re-tooled menus and price points, focused on updating restaurant locations and it seems to be paying off heading into this recovery.Ruby Tuesday said it has momentum going into fiscal 2012, but that the economy was still "vulnerable." The company is conservatively projecting same store restaurant sales at flat to up 2% for fiscal 2011.Double Digit Earnings Growth Projected for Fiscal 2012
    We are projecting further growth in 2012. Estimate for fiscal 2011 has been holding at 85 cents per share but this is earnings growth of 16.4% over fiscal 2011.

    I see Ruby Tuesday growing earnings another 18.6% in fiscal 2012. Diluted Earnings Per Share (EPS) for fiscal 2012 are estimated to be in the $0.60-$0.75 range, with second quarter 2012 estimated to be a net loss of $0.04 to $0.08 per share due to lower same-restaurant sales and year-over-year increases in advertising and interest expense. Ruby Tuesday Remains a Value Stock.I last reviewed Ruby Tuesday in May 2009 and at that time the company was fighting through "the most difficult operating environment" in the founder's entire career. What a difference a year makes. The company also has an excellent price-to-book ratio of 1.2, again, under its peers at 2.5 and well-within the value parameters as its under 3.0.Ruby Tuesday, Inc. announced that Marguerite N. Duffy, its Chief Financial Officer (CFO), will retire from her position effective as of June 5, 2012. The Company is commencing a search for her successor . This will not hurt (RT) in the long term.

    Ruby Tuesday (NYSE:RT is highest with an earnings yield of 8.4%. Ruby Tuesday, Inc. owns and operates a chain of specialty restaurants in the United States and overseas. The Company also franchises the casual dining concept under the Ruby Tuesday's brand.Over the past year, Ruby Tuesday has traded in a range of $6.35 to $14.48 and is now at $7.31, 15% above that low. The 200-day and 50-day moving averages have moved 0.88% lower and 0.17% lower over the past week, respectively.Sandy Beall, founder and CEO of Ruby Tuesday, said: "Fiscal 2010 presented a number of economic challenges. I am very proud of the way our team members responded to these challenges and enabled us to create positive momentum throughout our business. We have remained focused on our mission to be the best in the bar and grill segment by delivering a high quality casual dining experience with compelling value to every guest." RT has been on my buy list when it was at 1.30 a share ( http://madmoneyfund.blogspot.com/2008/08/my-top-august-stock-picks-for-2008.html )

    Ruby Tuesday (RT) is a buy - Target price by year 2013 , Is $15 a Share ( Long Term Play )

    Disclosure: I am long RT.

    Themes: income-investing-strategy Stocks: EPS, RTI, RT
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