Jim Cramer: 10 Stock Picks for 2013 (Updated With Videos)
By Jim Cramer 01/30/13 - 01:00 PM EST
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6. Bed Bath and Beyond Is Taken Private
Some companies are sick of where they trade and some private equity firms are desperate to put money to work lest they lose it, which is why I expect Bed Bath & Beyond (BBBY) will not be public next year at this time. I know, tall order on a $13 billion company. But this housewares and drug store chain with $2 billion in EBITDA in 2013, could get you perhaps as much as a 25% pop from its current $59 price, on a going private transaction. The company has been a relentless buyer of its own shares without borrowing a penny and it is sick and tired of its .88 PEG ratio despite consistent growth. Remember this is the company that put Linens and Things out of business, there's no one who could do the same to a private Bed Bath & Beyond. In the meantime you don't have to worry much about earnings. The stock is down $15 from its old high and my charitable trust, which you can and should follow along at www.actionalertsplus.com has been an aggressive buyer of the stock.