Is Riverbed Tech Up the Creek?
Cramer recommended Riverbed Technology back in October when the stock was at $19. It closed today at $31.75, but he's still concerned because it has dropped almost a dollar since being priced for its secondary offering recently. But a talk on-air today with CEO Jerry Kennelly seemed to put his fears at ease.
Kennelly says all the goals for the secondary offering were met: The float was increased, the overhang was dealt with, and the company got exposure to big investors. On top of that, Riverbed had a great fourth quarter.
"We actually had a profit for the first time ever," Kennelly said.
Cramer was still worried about a lock-up expiration comprising 56 million shares, but Kennelly explained that half of that got pushed to early May and most of the other half belonged to insiders were would be in trading blackout when the expiration happened.
This all sounded like good news to Cramer, who labeled the stock "the hottest stock in the Cisco-like market." He attributed the recent trouble to last week's sell-off and said Riverbed is a buy. "Could be the next Cisco," Cramer said.
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