Hungry For Value (MRT)

Morton's Restaurant Group Inc. MRT announced this morning that it was looking to explore "strategic alternatives," and may sell itself to bump up the share price.

The high-end steakhouse company was aided in this effort, by the company's two largest shareholders, affiliates of Castle Harlan Inc., and Laurel Crown Partners LLC authorized the effort. The steakhouse chain said it hired Jefferies & Co. JEF with this process.

Being that it's a restaurant business, the company has a lot of debt on its books, and little cash, with over $500 million in debt on its books, and just over $1 million in cash. Shares prices haven't moved much in the past year, gaining 10.5% over the past year. The company has low margins, and may have a hard time finding a buyer, given the state of its finances.

That being said, if you believe that Morton's can attract a buyer, with share prices at these depressed levels, it could be worth a speculative gamble here.

Morton’s Restaurant Group operates upscale steakhouse restaurants under the Morton’s The Steakhouse name and Italian restaurants under the Trevi name in the United States, Canada, Hong Kong, China, Mexico, and Singapore. As of February 23, 2010, it owned and operated 76 Morton’s The Steakhouse restaurants; and 1 Trevi Italian restaurant.