Next week there are two companies coming public next week – E-Telecare and Photowatt Technologies – one you want to watch and the other avoid.
Photowatt gets the red flag. The stock is a solar play, and it’s only strength lies in being an example of market saturation. There are too many solar stocks, Cramer says, and there isn’t enough demand to soak up all the supply, even with the hype that surrounds solar right now.
No price is cheap enough to make Photowatt a buy. It’s just another subsidy-dependent, silicon-based solar company. Stick Cramer’s favorite solar stock: First Solar, a best of breed, non-silicon solar play that’s making a bid to produce energy competitively without government subsidies. FSLR is up 23% since Cramer recommended is three weeks ago.
A better IPO to get in on might be E-Telecare, an outsourcing company in the Philippines. What’s the difference between outsourcing in India and the Philippines? Well, the Philippines used to be an unofficial American colony and it’s the third largest English-speaking country in the world, so when you call you get an easy-to-understand American accent.