Ruby Tuesday (RT) great pick

[Lizard King]

Great pick here, IMO.

Some basic info:
Ruby Tuesday, Inc., together with its subsidiaries, engages in the development, operation, and franchise of casual dining restaurants under the Ruby Tuesday brand name in the United States and internationally. As of June 5, 2007, the company owned and operated 680 restaurants; franchise partnerships operated 154 restaurants; and traditional franchisees operated 45 domestic and 54 international restaurants in the United States, the Asia Pacific Region, India, Kuwait, Saudi Arabia, Puerto Rico, Canada, Mexico, Iceland, Eastern Europe, and Central and South America. The company was founded in 1920 and is based in Maryville, Tennessee.

52 week: $5.70/$30.80
Book - $7.655

[pedrom727]

RT has a horrible balance sheet with some very inconsistent earnings in this past year which could be further hindered by rising input costs, slower economy, and margin contraction. I'd stay far away from this stock particularly because of the high debt levels.

[Lizard King]

RT has a horrible balance sheet with some very inconsistent earnings in this past year which could be further hindered by rising input costs, slower economy, and margin contraction. I'd stay far away from this stock particularly because of the high debt levels.

To each their own I suppose... But, in the past year, RT has spent some serious cash on reno's opened 3 new restaurants (hence the balance sheet), and WILL absolutely not be hindered by the economy.... Actually, quite the opposite, seeing the niche of "comfort" food they serve.

You will undoubtably eat your words, this is a serious "no brainer" pick, just remember where I called it!

[Chart Robot]

2703

[BuyOnDips]

I think it's still too early to buy casual dining stocks. Higher food costs and a possible recession starting has caused many of these stocks to plummet. RT stock is certainly hurting. And RT's management earnings forecast was totally wrong. The stock does have a nice dividend yield. Another positive is that insiders have started to buy shares in RT, which probably caused the recent bounce. I think it might trace back down before eventually going higher though. It might take a lot of time though.

http://biz.yahoo.com/ap/080110/ruby_tuesday_mover.html?.v=2

http://biz.yahoo.com/ap/080122/recesionary_restaurants_market_spotlight.html?.v=1

I'd wait at least another 3 months to see how the economy goes before buying any casual dining stocks. Now might be a good time to make a list of companies in that sector that you might want to buy.

http://biz.yahoo.com/p/712conameu.html

I'm looking at TXRH. They report on Tuesday. It will be interesting to hear what they have to say during their call. Good luck.

[mlegha1]

I think this might be a nice short set up after looking at the chart.It went up on decreasing volume plus the whole casual dining industry would suffer.

[yupyup]

I agree that casual dining is going to have a rough go at it if the economy slips further towards the dreaded R word.

I did see someone had a decent announcement 1-2 weeks ago. I believe it was Bob Evans.

I think red robin reports this week as well.

yupyup