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Thursday, September 21, 2006

September 21st - TXRH RUTH MRT

Cramer started out by looking at restaurant stocks after 2 analysts upgraded Wendy's International Inc. (WEN) and Darden Restaurants Inc. (DRI) which were near their 52 week highs. Both analysts had sell recommendations on them. Cramer said that lower gas prices would mean more cash in the low end consumer's pocket. Cramer recommended Texas Roadhouse Inc. (TXRH) and Jack in the Box Inc. (JBX) .

TXRH
Closing Price: $13.45
After Hours High: $14.06
Percent Increase at High: 4.5%
Price Level Off Point: $13.87
Percent Increase at Level Off Point: 3.1%
Trades on NASDAQ
Sector: Services
Short %: 11.51%
Days to Cover: 8.3
% Held By Insiders: 20.55%
% Held By Institutions: 54.40%

Cramer said TXRH was a "buy on pullbacks" pick and is a regional to national story. JBX is a bit to expensive for my taste closing at $52.04. As Cramer mentioned, he recommended TXRH in the past (February 6th) and the stock peaked at 9:30am at $16.64 after closing at $15.51 the previous day and hit a low of $16.01. The stock did get the air taken out of it after Cramer said this was a slow story but we have a nice whole $14 dollar number to watch tomorrow even though it broke it tonight initially. For anyone that watched FAST MONEY they also hinted at a possible down turn tomorrow which may help the downward slide on any spike tomorrow morning in TXRH.

Next Cramer looked at higher end restaurants and looked at OSI Restaurant Partners, Inc. (OSI) Morton's Restaurant Group Inc. (MRT) Ruth's Chris Steak House Inc. (RUTH) and declared Ruth's Chris Steak House Inc. (RUTH) winner.

RUTH
Closing Price: $19.11
After Hours Price: $19.90
Percent Increase: 4.1%
Trades on NASDAQ
Sector: Services
Short %: 4.51%
Days to Cover: 3.1%
% Held By Insiders: 29.58%
Held By Institutions: 60.10%

RUTH much like TXRH was down today and the Cramer recommendation has basically brought them slightly to the positive for the day. Another similarity is that we are right at the $20 price point which will be a key value to see if it is broken at the opening bell. They also trade under 500,000 shares a day but TXRH appears to be a bit more volatile in recent weeks.

Finally Cramer had his "Sell Block" segment and said to take profits from General Mills Inc. (GIS), Herman Miller Inc. (MLHR), Gymboree Corp. (GYMB), Darden Restaurants Inc. (DRI), J C Penney Corporation, Inc. (JCP), and Oracle Corp. (ORCL)

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