Jim Cramer: How to Spot a Suboptimal IPO

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It's time for some investing education. 

Jim Cramer broke down We Company's IPO process in his Real Money column Monday morning. 

But that's not all he did.

He's also talking about how investors can spot a suboptimal IPO. 

Here's a sneak peek of what Cramer wrote in his Real Money column.

"The valuations are fanciful: whatever the last round of investors claim it to be. Was WeWork ever really valued at $47 billion? It doesn't matter because we heard that the so-called ultimate arbiter, Masa Son and the Softbank Vision Fund, put in multiple billions at that level," wrote Cramer. "The snarky, on-point Business Insider last week penned a brilliant piece about a fellow by the name of Ron Fisher who may be the most powerful investor on earth because, as head of investment at SoftBank group, he's been dictating pricing. BI credited Softbank (SFTBY) and Fisher by extension with "overinflating WeWork's valuation in late state private funding."

Curious about how Cramer thinks that investors can spot a suboptimal IPO?

Here's a hint: Use Pinterest (PINS) - Get Pinterest, Inc. Class A Report as your basis. 

Watch the full video above for more.

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