Channel Advisor is currently operating as a loss, but the company has been accelerating revenue growth, which makes it worth a lot more than its expected $12 to $14 a share offering price. Cramer said the company could grow at 22% this year, making it worth at least 4.4 times sales, or $16 to $17 a share.
Also on the docket this week, exterior home products maker PlyGem, which will trade under the ticker PGEM. Cramer said this offering is less compelling, even though the housing market is on fire at the moment. He said if investors can get in on the IPO, the deal is worth it -- but he wouldn't pay more than $22 a share for the stock.
Executive Decision: Walter Robb
In the "Executive Decision" segment, Cramer spoke with Walter Robb, co-CEO of Whole Foods Markets (WFM), the organic food giant that blew away estimates when it reported on May 7, delivering a three-cents-a-share earnings beat on a 13% rise in revenue and a 6.9% increase in same-store sales.
Robb said gross margins have been steadily increasing at Whole Foods and he feels the company's target of 1,000 locations may be conservative. Whole Foods currently has a three-year pipeline of new stores in the works and Robb said he's excited about the company's future prospects.When asked about other tweaks and changes to the business model, Robb touted value and differentiation as the main drivers at Whole Foods. He said the company has increased the range of products it offers, has stepped up promotions and has kept pricing competitive. Customers appreciate the high standards Whole Foods offers, said Robb, and can trust its 30-year history. Turning to the company's recent stock split, Robb noted that while the split doesn't change the fundamentals, it does create notable excitement around the stock, something which is only enhancing its shareholder base. Cramer continued his recommendation of Whole Foods.
Lightning RoundIn the Lightning Round, Cramer was bullish on Tractor Supply (TSCO), Toll Brothers (TOL) and AES Corp (AES). Cramer was bearish on iShares MSCI Mexico (EWW).
Off the ChartsIn the "Off The Charts" segment, Cramer went head to head with colleague Bob Lang over the chart of online auctioneer eBay.
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