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Tuesday, October 10, 2006

Cramer Says Buy Cabela's (CAB) for a Turnaround

Cramer also asked how you can spot a turnaround before it hits the market.

He said you have to look for management getting the operations back in-line. Cramer said he thinks you should be a buyer of Cabella's (CAB), a hunting and fishing store that killed him before. He previously thought it was the real deal and it killed him. He thought management was out of it and not knowing anything, and then he said they even slammed the market by doing a 5 million share secondary. He said CAB is actually a different story Now and has everything pointing to a turnaround. Its stock should be bought because he thinks there will be an uptick in same-store-sales, and that lower gas prices will specifically help since many drive 200 miles to get to the stores. They also have a new improved inventory system and this quarter last year was horrific and should be easy to post higher numbers. It also has 8 new stores coming on in 2007, up from its 17 stores now. He said it is also still quite hated and analysts still dislike the stock and one-sixth of the float is short now.

He once again warned about buying after-hours and he said that you will be in the hold 3 days from now if you pay upmore than $0.50 from the close today. He thinks it can go to $23 to $28, but you have to use a limit order on it.

Jon C. Ogg
October 10, 2006
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