Shares of Regis closed higher Monday after Reuters reported private equity firms my be expressing interest in the company.

If you watch Fast Money regularly, you’ll remember about a month agohedge fund trader David Sackler of Moab Capital Partners suggested a long position in Regis because he thought it would be an attractive take-out target.

Considering these developments, we wondered what he’d have to say about the stock now?

Sackler tells us he still likes it. “We continue to be long and continue to believe the company will be acquired in the mid-$20’s. And we think the process could be resolved over the next few weeks."

However, even if there's no substance behind the takeout chatter Sackler still thinks shares are attractive. "If no deal is struck we feel the company’s strong cash flow provides floor underneath shares, he adds.

Want another trade?

While we were talking we asked Sackler for another name.

"I’d look at Sturm Ruger," he says. Fundamentally he likes the stock because his research shows gun sales have stabilized after a bubble in gun sales in 2008 -- and Ruger is the leader in concealed weapons sales --  the hottest segment of the gun industry.

Looking at the numbers Sackler things the stock is cheap. "Ruger trades at just 4.5 times cash flow versus rival Smith Wesson which trades at 6 times cash flow," he adds.

And much like Regis, he thinks the company is also an M&A target.  "I believe the company would make a good acquisition candidate for the Freedom Group, a roll up of fire arm manufacturers slated to go public shortly."

You’ll find Sackler’s complete trading thesis on Ruger on Sumzero.com -- an online community where hedge fund analysts share trading ideas -- beginning Wednesday evening.