Mad Mail: Cramer's Play on IPOs
On Wednesday, Cramer updated investors on three hot IPOs of companies he talked about earlier in the week.
First, on Monday he told viewers to try to get in on MaxLinear, a semiconductor company that’s a play on delivering faster video over the Web, including video to your cell phone. The Mad Money host said investors could buy as much as they wanted of MXL at $13, and to cut their position in half at $15. MaxLinear ended up pricing at $14, then opened at $17.95, just below the high end of of range, before closing at $18.70. So, if you got stock in the deal, Cramer said, ring the register on some of it. And if you don't, "This one now is too hot to chase."
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Same goes for Calix Networks, the broadband access company that came public today at $13. CALX then opened up 31 percent at $17 before coming back down to close at $15.10. While Cramer thinks CALX could go as high as $18, he recommends investors wait for more of a pullback before buying it in the aftermarket.
Lastly, the IPO that Cramer said would be safe to buy in the aftermarket is First InterstateBancSystem. It priced at $14.50 before coming public at $15.98. The Mad Money host reiterated that he thought this one was safe to buy at $16 or less, where it trades at one times its book value. And given that it closed at $15.70, he thinks First Interstate is still attractive.
Cramer: A big 618 booyah-to-ya. My question is regarding Hyatt Hotels. Recently, the stock has been on a complete tear, 66 percent since the IPO. My girlfriend, who works for the company, was talking about a trading blackout for any management. Does the trading blackout have anything to do with the recent price jump and is this normal for companies to do? -Christopher Benton in Illinois
Cramer says: “Yes there is a blackout period. It typically revolves around being close to the end of the quarter where some in the company actually know what the company might do when it announces its quarter, which then puts them unfairly in advantage. So the company blocks out everyone. It’s a good policy, it’s the right policy.”
Hi Jim: Love your show and thanks for all the good advice. I made a horrible move on STEC , a stock I knew very little about and purchased 300 shares. What happened to this stock? Is there any possibility of recovery or should I just take my lumps and sell for fear of a further loss? –Mario in Pasadena, Calif.
Cramer says: “I think STEC is a poorly run company. No one wants to hear that, so immediately the company will dash out letters saying Jim Cramer is inaccurate and calling it poorly run. What can I do when a stock doesn’t do well and I look at a company and it disappoints. I can not say it’s doing great…That company is not doing well, I would not own it.”
Jim: Booyakasha!!! I am writing you from Chi-town, so I have no sports teams to root for, but I do root for the stock purchases I make. What is going on with Weatherford International? Is it going to stay stagnant at these levels or should we be buying more because this play is more of a second half of the year winner?
Thank you much! -David in Chicago
Cramer says: “This is the cheapest oil service play, don’t forget it has a lot of business in Iraq. There was a very negative piece put out about how they could be in trouble with the Foreign Corrupt Practices Act. I think that is fully integrated into the stock. And I would still buy it and buy it aggressively.”
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