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Jim Cramer came onto MAD MONEY tonight saying he thinks that Total Systems Services Inc. (NYSE: TSS) is one that can be taken over next in a sector and $40 would be a fair price based on Alliance Data prices. Synovus Financial Corp. (NYSE: SNV) is the parent and Third Point is now being an activist investor. The earnings growth of 18% is reason enough to own this. Cramer did note that he is concerned that Automatic Data Processing Inc. (NYSE: ADP) might be acquired first.

Before you trust Cramer, there are some other instances to look at: Alliance Data Systems (NYSE: ADS) was just acquired, First Data Corp. (NYSE: FDC) is going private, and even Bisys Group Inc. (NYSE: BSG) got gobbled up. Keep in mind that some of the premiums in this sector have been small. ADS was nearly a 20% stock jump, but BSG was a horrible low-premium buyout. In making any "buyout projections" you really need to make sure that these stocks are ones you want to own on your own. Picking a company for a buyout just "for the speculation of a buyout" is a strategy that can be more than painful regardless of how nutty private equity deals get.

Cramer's two financial service buyout picks originally appeared on BloggingStocks on Mon, 21 May 2007 19:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ADPADSAlliance DataAlliance Data SystemsAllianceDataBisysBisys GroupBSGbuyout projectionsBuyoutProjectionsFDCFirst DataFirstDataJim CramerJimCramerlow-premium buyoutMAD MONEYprivate equityprivate equity dealsSNVSynovusSynovus FinancialThird PointThirdPointTotal Systems ServicesTSSMon, 21 May 2007 19:50:00 EST