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Tuesday, October 17, 2006

Cramers Says S1 (SONE) is the Next Buyout Like OPEN

On MAD MONEY Cramer also looked into his crystal ball to look at the future. Cramer said go back to Monday Morning and look at Open Solutions (OPEN) and pretend you owned it and were up $7 on the buyout. On the crystal ball he wants to find "THE NEXT OPEN."

He says the next OPEN is S1 Corp. (SONE). He said that Carlyle and another private equity group is buying OPEN,and they may sell some off and keep some. Cramer thinks the private equity buyers are the last buyers of resort now. He thinks others will look at companies that look like OPEN, and that is SONE. SONE offers solutions instead of just software, and 3/4 of their business is recurring.

He also wanted to go over the fundamentals. SONE dropped the ball with no growth in 2005, and he thinks they are back on track in 2006. Cramer said if you start adding this in after a couple days it will work. He said they also have some tax credits that will keep it from paying out too much in taxes.

SONE closed down 0.8% today, but shares have now jumped more than 15% to $5.80 in after-hours trading.

Jon C.Ogg
October 17, 2006
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