Game Plan for the Week of April 2


It’s Friday on Mad Money, and that means it is time for a game plan for the upcoming week. This week, Cramer’s got his eye on three things – two IPOs and one quarter.

Veraz Networks is coming public next week. This is a telecommunications-equipment and internet-infrastructure company that makes a lot of the infrastructure for VoIP (Voice-over-Internet Protocol). It’s set to IPO between $10 and $12, but Cramer would be a buyer up to $14. Some people are already thinking Vonage , the single worst IPO of 2006, when they hear VoIP. But Cramer says that’s short-sighted.

Vonage has been a disaster because it’s a retailer of internet phone service – and that’s just an awful business, Cramer says. Vonage isn’t evidence that VoIP is illegitimate. It saves a lot of money, but we still need the infrastructure. That’s where Veraz comes in. Some similar IPOs have debuted fairly recently: Acme Packet , Riverbed Technologyand BigBand Networks . All three traded very well in the aftermarket, and Cramer expects the same from Veraz.

The second IPO is Comverge, a company that makes on-site wireless devices that are placed wherever people consume a lot of energy. The Comverge devices are designed to shut down nonessential parts of the power grid if it becomes overloaded during peak energy demand hours. Utilities love this technology because it increases their profits, Cramer says. The idea sounds enticing, he admits, but he can’t endorse buying Comverge for a penny above $12.50, which is well below the current pricing (between $15 and $17). If the book-runners lower the price, then maybe Cramer will get interested.


Finally, Best Buy reports quarterly results on Wednesday – the only quarter worth watching next week, in his opinion. With Circuit City blinking, investors need to wait to see how bad this quarter really is. Even after being marked down, Cramer doesn’t think Best Buy is as good as Gamestop , which has the hottest part of consumer technology. But Best Buy is still a buy to him on the post-quarter weakness.

One other note: Healy’s reports next week, and Cramer feels compelled to reiterate that it is a total, unsustainable fad, unlike Crox or Under Armour . He won’t get interested in this stock until it goes to the lower twenties.

Bottom Line: Do some homework on the Veraz IPO and stay away from Comverge unless the pricing goes lower. Watch the Best Buy quarter – if it does the expected and knocks the stock down, Cramer would be a buyer.

Questions? Comments? madmoney@cnbc.com