Time to Double Down on NYSE?
Before diving in Monday’s “Mad Mail,” Cramer returned to Interactive Intelligence, a stock that John in Wisconsin had asked about last Thursday, Nov. 18.
Interactive Intelligence is largely a software provider for call-centers, a one-stop-shop that allows its customers to automate, monitor, route, and track all customer communications, from calls to e-mails to faxes, within a unified system, something that saves call centers both time and money. This makes up 70 percent of the company’s sales. The other 30 percent comes from ININ’s Internet Protocol communications division, where it provides Internet telephone services to business customers.
Now, ININ is up 49 percent just in the last six weeks thanks to a new communications-as-service offering that uses cloud computing to provide Internet-based telephony with lower upfront costs and faster implementation than setting up an actual physical network. This division accounts for only 4 percent of total revenues, but it shot up an eye-popping 79 percent year-over-year just in the last quarter. And Interactive Intelligence has already signed a slew of new deals in this space and already has an edge of the competition.
So what’s the play then? As much as Cramer likes the story here, he can’t yet recommend ININ. It’s too expensive at this level. So before he can consider for even speculation, the share price needs to come down. Investors, then, should sit tight until then.
Now to e-mail…
Annie asked why Intralinks, which recently filed for a follow-on public offering, hasn’t dropped in price ahead of the deal. Shouldn’t the expectation of new shares flooding the market bring down the stock? Typically, yes, Cramer said, but if there’s a chance that not enough is being offered, investors who likes Intralinks may have already started buying with the intention of completing their position when the deal hits. That would account for the stock’s rise in price rather than its fall.
“People are excited,” Cramer said, “and they’re buying ahead of the deal to get all they want.”
Andrew in Pennsylvania said he was trying to raise some cash, but he couldn’t decide between selling NovaGold Resources and Alcoa . Cramer’s recommendation? He likes both, actually, and hates the idea that Andrew would have to sell either one. But given that it seems Alcoa has more room to run, at least for now, he’d recommend taking profits on NG.
Ryan wondered what kind of effect the recent buzz about insider trading could have on the market. Cramer said that while some traders have begun to short the holdings of the hedge funds involved so far, on the assumption that the funds are in trouble and will have to liquidate those holdings, he thinks any impact from the buzz has already happened and will turn out to be “pretty miniscule, as we had a remarkable rally going into the close.”
A different Ryan wanted to know if NYSE Euronext was the play on investors reentering the market. He said he’d already lost 42 percent on his NYX position and wasn’t sure if now was the time to cut his losses or double down on the stock. Definitely don’t do the latter, Cramer warned. He wants to see higher trading volumes and more IPOs before he recommends NYSE. Without those, “I think the stock just marks time.”
When this story published, Cramer’s charitable trust owned Alcoa and NovaGold Resources.
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