Cramer's 'Mad Money' Recap: Stocks When They Sizzle

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There are too many people who own too many stocks just because they're "sizzling" or "too hot," but have no clue about what the companies do to make their money, Jim Cramer told viewers of his "Mad Money" TV show Tuesday.

This week, Cramer said he's attempting to demystify "hot new stocks" and named InnerWorkings (INWK Quote) as such a stock.

The company, which outsources printing services, is up 87% from its initial public offering in August, he said. As the company doesn't have its own printing equipment, Cramer called it "an incarnation of the cyber-middleman."

The stock has "a long way to run" and is only covered by four analysts, which means it has not yet attracted the attention of Wall Street, he continued.

InnerWorkings' stock lockup expires Feb. 11, but this doesn't mean market players shouldn't buy the stock now, Cramer said. If people do buy the stock now, they should consider swapping out of it before the lockup expires "so they don't get stampeded by sellers."

In addition, InnerWorkings has had positive operating profit since 2002 and positive net income since 2003. Although it has a lot of competition, it has "a reason to exist" as it adds value and saves its customers money, Cramer said.

With the stock near $17, Cramer told his viewers that he would pull the trigger and buy InnerWorkings. He urged people not to buy it right away but to take 48 hours to look over the stock and do their homework on it.

Cramer advised people either to buy half their position in InnerWorkings now and buy half after the share lockup expiration, or to buy their position now and swap out of it the week before the share lockup expires.