Given the expected demand for the Twitter IPO, Culter said the NYSE did a test two weeks ago to simulate a high volume day, along with the opening of Twitter and everything operated "seamlessly."
It's a LOCK
Don't believe the hype, Cramer warned investors. While many people will be lining up for the upcoming Twitter IPO, many will also get burned in the aftermarket once the stock opens for business. That's why sometimes the smarter move is to look for IPOs that bomb on their first day and determine whether you have a broken IPO or a broken company. That's why Cramer circled back to LifeLock ( LOCK), the protectors against identity theft that came public 13 months ago. LifeLock was a classic case of a broken IPO, Cramer explained, as shares priced below the range they were expecting only to drop 7% on their first day of trading. In the weeks that followed, LifeLock shares slipped 23%. But after finally regaining its footing from its ill-priced IPO, LifeLock has rallied 129% from its lows and just beat earnings expectations by 1 cent a share on sharply higher-than-expected revenue. While the IPO was a breakdown of market mechanics, Cramer explained, everything LifeLock has done since has been remarkable. Cramer said the fundamentals at LifeLock remain terrific, with a $7 billion addressable market for the company's $10 to $25 monthly service. Shares trade at 32 times earnings, well within the range money managers will pay for a company that's growing at 25% a year.
In the Lightning Round, Cramer was bullish on Wolverine World Wide ( WWW), BP ( BP), Pharmacyclics ( PCYC) and Navios Maritime Partners ( NMM). Cramer was bearish on JetBlue Airways ( JBLU) and W. P. Carey ( WPC).
Executive Decision: Michael Bonney
In the "Executive Decision" segment, Cramer spoke with Michael Bonney, CEO of Cubist Pharmaceuticals ( CBST), the makers of antibiotics to treat drug-resistant bacteria, which recently posted disappointing results including a nine-cents-a-share earnings miss on weaker-than-expected revenue. Cramer said the earnings are not the story at Cubist because the company's $1.2 billion in acquisitions are what is helping shares post a 33% gain since he last spoke to Bonney. Bonney was also upbeat on Cubist's acquisitions, saying that while they still expect growth from the current line of antibiotics, the acquisitions have allowed the company to diversify its revenue base, turning the story once again back to the pipeline of coming drugs. Cubist expects Phase III trial data from one of its drugs as early as next month, said Bonney, and Cubist should have drugs in front of the Food and Drug Administration in June of next year and again in late 2014 and early 2015. When asked about these new antibiotics, Bonney explained the real advancements are coming from antibiotics that have both oral and IV formulations that boast shorter courses of therapy and fewer drug interactions than the current available treatments. He said these new classes of drugs aren't for everyone, but for a subset of patients they can make a real difference and save the health care system a lot of money. Cramer said Cubist remains an interesting opportunity given its recent weakness.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer opined on the disparity between the homebuilding stocks and the home-related stocks. He said these sectors seems to trade as if they're totally unrelated when, in fact, they are. Cramer said there's a reason why homebuilders such as Pulte Homes ( PHM) are down 2% for the year and Toll Brothers ( TOL) is up only 1%, while home-related stock Masco ( MAS) is up 26% for the year and Home Depot ( HD) has risen 24%. Homebuilders trade on consumer confidence and interest rates, Cramer explained, while the home-related stocks trade on the pent-up demand to spend on an existing home that's finally rising in value again. That's why he continues to like stocks like Home Depot, but thinks all of the home builders are still sell, sell, sells, as there's simply no reason to own them. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.-- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC