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Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.
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Dec.10
7:58 PM ET
Monday, 10 Dec 2007
Triple-S Could Triple for Investors

Cramer dug deep to find another moneymaking strategy for Homegamers on Monday's Mad Money -- investing in nonprofit healthcare companies that converted to for-profit firms.

Here's how it breaks down: Turns out not-for-profit managed healthcare companies with the exclusive rights to the Blue Cross-Blue Shield brand in their states do quite well when they turn for-profit and then come public. Companies that followed this route were up an average of 28% a year for the first four years on the market. Even better, WellPoint [WLP  Loading...      ()   ] eventually bought all of them at a hefty premium.

Triple-S Management [GTS  Loading...      ()   ] could be next, Cramer said. This Blue Cross-Blue Shield affiliate in Puerto Rico held its IPO last Friday, Dec. 7, and, luckily for believers in Cramer's plan, the offering was a sleeper. Shares priced at $14.50, well below the expected range of $16 to $18, and opened on the market only 31 cents higher. So now investors have a chance to buy GTS on the cheap before the growth happens.

That growth should come once Triple-S gets its contracts in order. As a nonprofit, barely profitable and unprofitable contracts aren't uncommon, but they make no sense for a company looking to make money. So GTS will raise its prices either to get more money out of its customers or drive away those that aren't willing to pay up. That should fatten up profit margins over the next few years, Cramer said.

A word of caution, though. Don't pay up for the stock. Wait a week for the hype around Cramer's recommendation to take its course. Cramer said he thinks there will be a better entry point then. And don't forget to use limit orders.

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