In the "Know Your IPO" segment, Cramer advised investors against investing in Calix Networks, a broadband equipment maker set to debut tomorrow, unless they can get in on the IPO deal itself. 0He said that the Calix deal is very tight, and shares will likely trade higher than the IPO price tomorrow, making them far less attractive to own if you're not in on the deal. There is another IPO coming to market tomorrow, however, and Cramer said that deal is only getting a luke warm reception from Wall Street, which makes owning shares in the after market far more appealing. That deal is First Interstate BancSystems, which will trade under the ticker FIBK. Cramer said this regional bank with 72 branches has a $16 book value, is very well run and has $5.8 billion in deposits with a loan portfolio of $4.8 billion. Cramer said with banks still hated on Wall Street, the First Interstate IPO is a real opportunity. The company will have a 45-cent dividend when it opens, which gives it a 3% yield. He said this IPO should be owned if it opens lower tomorrow.
Google vs. Baidu
Cramer went head to head with colleague Dan Fitzpatrick over the chart of Google ( GOOG), and its Chinese rival Baidu ( BIDU), in the wake of Google's recent decision to close search operations in China. Fitzpatrick was in love with Google's chart, which was trending solidly higher, until December when the Chinese scuffle first began. On Jan. 22, the stock gapped lower and has been struggling ever since. Fitzpatrick sees support for the stock at $500 a share, but said if it falls below that level, all bets are off. The chart of competitor Baidu however, now looks as Google's did pre-December. Fitzpatrick noted that after a three-month consolidation period, shares of Baidu are on the move, and if the stock closes above $600, it's off to the races. Turning to the fundamentals, Cramer said that he still likes Google's search and advertising businesses, noting that the current revenue lost from China is limited. However, Cramer said that the future damage to Google is far worse, as China could have represented between $5 billion to $6 billion in revenue by 2014. He said he'd still buy Google, but only on weakness. Baidu however, is a different story. Cramer said Google's departure from China leaves the country wide open for Baidu and could boost earnings 35%. Even though the stock has already run on the news, Cramer said Baidu now owns all the future growth in China and he'd be a buyer.