NEW YORK ( TheStreet) -- "Be afraid of the housing starts number due out tomorrow," Jim Cramer cautioned the viewers of his "Mad Money" TV show Monday. He said the reaction to the housing starts number that are scheduled for release Tuesday and the existing home sales report on Wednesday will most certainly take the markets lower. Cramer said he doesn't need a crystal ball to predict the headlines from tomorrow's and Wednesday's trading. He said the markets will fall as the economists are "shocked" by the poor performance in housing. Cramer wondered why these estimates are so high in the first place. "All of these estimates are unrealistic," said Cramer, given the unemployment rate and the expiration of the federal tax credit on new homes. He said the economists, and their macro views on the economy, have been predicting housing wrong demand month after month, and tomorrow will be no different. Cramer, on the other hand, said he takes his cues from the homebuilders themselves, who are far more cautious, and accurate, in their forecasts. So while the world is "shocked" by the housing numbers Tuesday and again on Wednesday, Cramer said investors should be using the weakness as a buying opportunity and should be adjusting their portfolios ahead of time. He said there is growing pent-up demand for new homes, and that demand will be unleashed soon. "Ignore the sirens of negativity," Cramer told viewers, "housing will get better." And in the meantime, use the market weakness and be ready for the wave higher.
Two IPO PlaysIn the "Know Your IPO" segment, Cramer compared two coming IPOs, that of Green Dot, which will trade under the ticker "GDOT," and Ameresco, which will trade as "AMRC." Cramer said both IPOs can make you money, but only if you play them correctly. Green Dot is the country's largest prepaid debit card provider, a huge business that didn't exist five years ago, but one that now has more than $119 billion loaded onto prepaid debit cards. Cramer said this business flourished during the recession as more and more consumers chose prepaid debit cards over expensive credit card alternatives. Green Dot is expected to offer 3.8 million shares, priced between $32 and $35 a share. Cramer said he expects the deal to pop, but would be a buyer on the IPO only, and only up to $35 a share. Longer term, Cramer's worried that Green Dot will be held hostage by its largest customer, Walmart ( WMT), which is why he sees the stock longer term hovering near $31 a share. Ameresco, on the other hand, is a great long-term investment, said Cramer. The company helps plan and build energy efficient projects for governments and large institutions. Cramer said it's estimated that the U.S. will need $500 billion in such projects through 2020 to help it save more than $1.2 trillion in energy costs. Ameresco is expected to price between $14 and $16 a share, but Cramer said he'd pay up to $18 a share for the stock given its great long-term outlook. With 75% of the company's revenue coming from the government, Cramer said Ameresco may not be as sexy as Green Dot's debit cards, but it has solid customers.
Euro Bounce"With the euro rebounding, we need to start thinking about stocks that can benefit from currency translation," Cramer told viewers. And that means companies like Philip Morris International ( PM) and Colgate-Palmolive ( CL) are in a good position. Cramer said the name of the game is overseas profits, and that's perfect for companies like Philip Morris, which derives 100% of its profits from overseas, and sports a solid 4.6% dividend yield. Philip Morris already cut their 2010 earnings guidance, but with the euro now rebounding, Cramer said those estimates are now too low. Philip Morris has been raising prices, despite higher taxes being levied on its products. Additionally, the company has been $1.5 billion in cost savings since its split with Altria ( MO), which he also owns for his