Cramer's 'Mad Money' Recap: Get Healthy With Triple-S

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

---

Nothing is ever a sure thing on Wall Street, but investing in a non-profit health care company that turns into a for-profit company comes pretty darn close, Jim Cramer told viewers of his "Mad Money" TV show Monday.

Cramer noted one group of stocks that fits this bill: non-profit Blue Cross-Blue Shield affiliates that turn into publicly held, for-profit companies.

Cramer said he's run the numbers on the performance of these stocks, and the numbers show they work. During the first four years in the market, Cramer said he found that these stocks were up 28% a year on average.

Last Friday, a company called Triple-S Management (GTS Quote) went public, he said, and this one, just like the others, should make people a lot of money.

Investors are lucky because so far this one looks like a dud, Cramer said. It opened only 31 cents higher than its $14.50 price and is now trading at $15.87, still below its expected opening range of $16 to $18.

Non-profit companies, he explained, all start out with non-profitable or barely profitable contracts. But when these health care companies go public, they raise prices on the contracts that don't make money to make investing worth the shareholders' while.

Although a good story, Cramer warned against overpaying for the stock in after-hours trading. "If you don't use limit orders, you're going to get hurt," he said, adding that people should do their homework and buy it next week.