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Game Plan for the Week of March 26 – Part 2

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.

Another note worthy of mention is that ETEL was founded by McKinsey employees and uses a McKinsey style approach to business process outsourcing. Any association with McKinsey is worth a ton to an outsourcing company.

The price range for ETEL is between $12.50 to $14.50, but Cramer is willing to pay as much as $15 for the stock. He suggests selling if it goes over $19.

These numbers are based on a comp with competitor People Support, which dropped from $22 to $13 overnight a couple of weeks ago. Cramer’s uses the lower end to value ETEL, and that’s how he figures for $15 and $19.

Cramer does think the People Support deal with hang over ETEL, but the pricing is so low he’s still recommending you try to get in for anything less than $15. Just remember to be disciplined and don’t pay up.

Bottom Line: Two big IPOs next week. It’s probably best to steer clear of Photowatt, but E-Telecare is definitely worthy of consideration.

Questions? Comments? madmoney@cnbc.com

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