This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer's 'Mad Money' Recap: What to Know About IPOs

Click here for an archive of Cramer's "Mad Money" recaps.


Updated from 7:48 p.m. EST

Jim Cramer told viewers of his "Mad Money" TV show Tuesday to take a look at three initial public offerings scheduled to take place this week: IPG Photonics, Guidance Software and Artes Medical.

The public, media and Wall Street all are "fascinated with IPOs," he said. But although market-players can get coverage on these IPOs everywhere, only "Mad Money" gives advice on which ones to buy and which ones to avoid, and at which price to get in and out, Cramer said.

Cramer recommended staying away from Burger King (BKC) and Hertz (HTZ - Get Report), and suggested getting into iRobot (IRBT) and Under Armour (UARM) when they came public.

Cramer also warned people to beware " Vonage (VG - Get Report) the Dog." However, he said he got Sealy (ZZ) wrong because he trusted the private-equity firms that took it public.

When analyzing an IPO, Cramer said there are a few things people should consider. He advised investors to take a look at how the IPO is priced, then closely examine its "hotness."

Third, when Cramer looks at an IPO, he said he tries to figure out if it's "desperate" and needs the cash or if it's in good shape on its own. Furthermore, he thinks about whether or not the IPO should be "tossed back," and he always decides at which price he should sell it.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
ZZ $2.19 0.00%
BSX $17.74 0.00%
CSCO $29.13 0.00%
DVN $68.61 0.00%
F $15.81 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs