Don't Overlook the Research 'Orphans'

When you are cursing out this market, think of Earle M. Jorgensen (JOR - commentary - Cramer's Take). That's the steel company that just got a bid Tuesday at a hefty premium to where it was selling, and a 100% premium to where it fell to last May for no good reason at all.

Southern Californians knew this company as a great company for years. But it came public right before the big steel bear market hit and had no sponsorship whatsoever. Take a look; I couldn't find much research on it even from the banker. Orphaned at the time of the IPO! They should have called it Annie Jorgensen.

But companies have value, even steel companies. This company was generating gigantic profits, profits that were unwanted on Wall Street but salivated over by Main Street, which is why Reliance (RS - commentary - Cramer's Take) struck when it did.

My take is that the real gains in this market won't come from the Intels (INTC - commentary - Cramer's Take), they will come from the Jorgensens, unloved companies without research because Wall Street has cut back on both sponsorship and research drastically, yet the values just keep getting built upon.

Now, that doesn't mean we should go buy Caribou Coffee (CBOU - commentary - Cramer's Take), another hatred IPO from last year. It does mean, though, that we can't just overlook every company without sponsorship. That's where the values are, for heaven's sake!

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Please note that due to factors including low market capitalization and/or insufficient public float, we consider Caribou Coffee to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.

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At the time of publication, Cramer was long Intel.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for ActionAlertsPLUS. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

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