Small casual dining chain Cosi (COSI) has had its share of issues over the years, namely that it finally had a profitable quarter after 10 years as a public company. Several months ago, after seeing an interview that Jim Cramer did with Panera Bread's (PNRA) CEO, it occurred to me that Cosi might make a cheap acquisition for the company, which has been public about its interest in acquiring other chains. Cosi's recent rights offering has quelled that hope, for now anyway.
I'll also sometimes look at companies when deals have gone sour. In late May, Gores Group walked away from its $15 a share deal to acquire auto repair and retail name Pep Boys (PBY), which I've owned in the past.
Like Midas, Pep Boys is also real estate rich, but Gores was scared away due to questionable operating performance. For its trouble Pep Boys walked away with a $50 million breakup fee. Shares are now trading 33% below Gores takeout price, and very near tangible book value. Pep Boys may have some challenges in front of it, but I am intrigued by the fact that it owns the real estate for 232 locations, and four warehouses (1.4 million square feet). Some fleas, yes, but one I'm watching.
At the time of publication, the author was long KKD and COSI.This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV