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

Guidance Software develops digital investigations and will trade under the symbol GUID when it debuts this week.

He called this initial offering the "price is right IPO." The company should come public somewhere between $12.50 and $14.50, which are "right prices," according to Cramer.

Cramer believes Guidance is worth buying under $18 a share, but when it gets above $20, he said people should ring the register.

Moreover, Cramer said he has "no doubt" Guidance is a "quality business" and has "a really rapid growth market." In fact, the $600 million market the company is in is expected to become a $1.4 billion market in 2009, he said.

Guidance sells its product to law enforcement agencies and big organizations, Cramer continued. Nearly one-fifth of the Fortune 500 companies use its software. Further, it has "high gross margins" and is "a pure play on digital forensics," he said.

Although Cramer said he doesn't consider this IPO "hot" like IPG Photonics, and it has established competitors, he said it is not "a desperation offering" and "it's not late to the game."

Guidance has the potential of becoming a core holding, he added. But it could go "unloved," which is why it's all about the price, Cramer said. He endorsed buying it anywhere under $18, but nowhere over $20.