jeanine poggi is a reporter at the street.com. >> tom: what makes for a good retail buy-out candidate. >> a good candidate needs to have strong cash flow, clean balance sheet, good earnings leverage and also have turn around potential under new management. >> tom: so strong financial and looking for an opportunity to turn around. one of those that's been rumored to be a buy-out candidate for the last several months has been tiffany. the high-end retailer and jewelry stores. shares have clearly rallied well. is there a turn around potential or has it already turned around? >> well, tiffany is a great company to look at lagging a 52-week high and it means there's potential for the stock to move higher and doing well and recoug recovering. >> tom: polo ralph laueren had a break-out quarter and concerned a little bit about the japan situation and one rumored to see venture capital money, private equity money. where's the turn around with the rally we've seen over the past year. >> what we saw was chatter around ralph laueren and there's potential for a buy out and it's a global brand and