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More Retail M&A On The Way?

The traders suggest keeping a close eye on the retailers after JCrew confirmed reports that it is being bought by a pair of private equity groups.

TPG Capital and Leonard Green & Partners agreed to pay about $3 billion for the retailer, or $43.50 per share - a 16% premium above the closing price Monday.

What must you know about the deal going forward. Karen Finerman is long JCrew and intends to remain long. Find out why. Watch the video now!


















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We also spoke with Piper Jaffray analyst Jeffrey Klinefelter about other companies similar to J Crew that might be the right size and the right multiple to be takeout targets.

Here's his list:

Retail Take-Out Possibles... at 7x EV/EBITDA (similar to J Crew deal)

Upside From Yesterday’s Close
Gap +44%
Aeropostale +51%
American Eagle +31%
Hot Topic +50%
The Wet Seal +63%
Source: Piper Jaffray

Check out our entire conversation with Klinefelter. Watch the video now!



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Trader disclosure: On November 23, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour Owns (AAPL), (BAC), (BX), (TSO), (HPQ), (FXI); Finerman's Firm Is Short (WAG; Najarian Owns (BAC); Najarian Owns (GDXJ) Call Spread; Najarian Owns (MS); Najarian Owns (NUAN) Calls; Najarian Owns (PFE); Najarian Owns (YHOO); Najarian Owns (CRUS); Najarian Owns (WLT) Call Spread; Najarian Owns (MEE) Call Spread; Najarian Owns (TEVA); Najarian Owns (CNI); Najarian Owns (AKAM) Call Spread; Najarian Owns (DO); Najarian Owns (DOW); Najarian Owns (FIRE); Terranova Owns (UPL), (C), (PEP), (VRTS), (OXY), (GS), (FCX), (IBM), (CRM), (MCD), (NKE), (AAPL); Terranova Owns (CRM) Puts; Terranova Owns (FCX) Puts; Finerman's Firm Is Short (IJR); Finerman's Firm Is Short (MDY); Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (IWM); Finerman's Firm Is Long S&P Puts; Finerman's Firm Is Long Russell 2000 Puts; Finerman Owns (AAPL); Finerman's Firm Owns (AEO); Finerman's Firm Owns (ARO); Finerman Owns (BAC); Finerman's Firm Owns (BP); Finerman Owns (BX); Finemran Owns (DYN); Fnierman's Firm And Finerman Own (HPQ); Finerman's Firm And Finerman Own (JCG); Finerman's FIrm And Finerman Own (JPM); Finerman's Firm Owns (M); Finerman's Firm And Finerman Own (MSFT); Finemran's Firm Owns (SKS); Finerman's Firm Owns (TGT); FInerman Owns (USO); Finerman's Firm Owns (WMT); Steve Cortes is short (UNP), (CSX), Nasdaq Futures, (AAPL) and corn. Steve Cortes is long 2 Year Notes, U.S. Dollar vs. Mexican Peso, Australian Dollar, Canadian Dollar. Steve Cortes Owns (TSN) and (K).

For Anthony Scaramucci
Scaramucci And Skybridge Capital Own (M)

For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
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For Brian Kelly
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Accounts Managed By Kanundrum Capital Own (RTH)
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Accounts Managed By Kanundrum Capital Own (SMH)
Accounts Managed By Kanundrum Capital Own (JJG)

For Simon Baker
Baker And Baker Avenue Asset Management Own (ODP)
Baker And Baker Avenue Asset Management Own (C)
Baker And Baker Avenue Asset Management Own (CTSH)
Baker And Baker Avenue Asset Management Own (IBM)
Baker And Baker Avenue Asset Management Own (GLD)
Baker And Baker Avenue Asset Management Own (GDX)
Baker And Baker Avenue Asset Management Own (PHYS)
Baker And Baker Avenue Asset Management Own (SLV)
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For Jeff Klinefelter
Piper Jaffray Is A Market Maker In (HOTT), (WTSLA)
Piper Jaffray Usually Provides Bids And Offers For And Will Buy And Sell On A
Principal Basis (ANF), (ARO), (AEO), (GES), (GPS), (JCG), (JCP), (KSS)

For Scott Nations
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