Jim Cramer on IPOs: The Best and the Rest If you'
Post# of 63696
Jim Cramer on IPOs: The Best and the Rest
If you've been looking for new ideas, chances are you've been looking at stocks about to go public.
"So far, 2013 is turning out to be a real good year for IPOs ," Cramer said. We've seen seven deals since the new year began, and at this point all of them have made you money."
4 of them, Bright Horizons , LipoScience , CyrusOne , and Norwegian Cruise Lines all popped by double digits on their first day of trade. The other 3 were master limited partnership IPOs that were not so hot in their first day of trading, but have since bounced back.
"That's a darned good track record, especially when you consider that we've got five more IPOs coming next week, including Zoetis , which is the spin-off of Pfizer's animal health division," said Cramer. Read More: Cramer - This IPO for the Dogs
(Having trouble viewing the video? Click here!)
However - not all IPOs are created equal.
"While January has been a fabulous month, they can't all be winners," Cramer reminded.
And one of the best ways to separate the best from the rest is too look back at 2012 and identify a theme. "That's a great way to figure out what's working and what isn't working," said Cramer.
If you can extrapolate a common idea from last year's winners, chances are you can apply that idea to determine which forthcoming IPOs may have the greatest chances at success.
------------------------------------------------------------------------
More from Cramer:
Cramer's Game Plan: 12 Stocks to Watch
Are Pullbacks Buying Opportunities
Cramer: This Semiconductor Stock Likely Bottomed
------------------------------------------------------------------------
Following are some of 2012's best performing IPOs.
VipShop Holdings - a Chinese social media IPO. "They're a a leading player in China's nascent flash sales market," Cramer explained.
Proto Labs ( PRLB ) - a company that rapidly manufacturers custom parts for prototyping. "Their technology is allowing them to take share for the traditional rapid injection molding businesses," Cramer said.
HomeStreet ( HMST ) - a full-service community bank that operates in the Pacific Northwest. "They have a highly profitable mortgage business. Remember the housing resurgence and the rise of the regional banks are two of my top ten favorite themes for 2013," Cramer said.
Guidewire ( GWRE ) - a tech company that provides software systems to the property and casualty insurance business. "It's a niche software company with rapid growth, defensible barriers to entry, and highly visible earnings streams," said Cramer
Intercept Pharma - an orphan drug developer. "Intercept's lead drug had very strong data and a large market opportunity. It's a company with growth that's protected and predictable," said Cramer.
Nationstar Mortgage Holdings ( NSM ) - the largest specialty mortgage servicer in the country. "Nationstar has been aggressively taking share in the ten trillion dollar mortgage servicing market," Cramer said.
Eloqua - a service company that's a leader in the revenue performance management space. "Eloqua provides companies with a platform that helps them figure out the value of their marketing initiatives; that's a big challenge for many businesses," said Cramer
WageWorks ( WAGE ) - a provider of on demand employee spending account benefits programs. "Just like companies can outsource your payroll to an ADP or a Paychex, companies can outsource the management of their flex spending accounts to WageWorks," said Cramer.
What's the one thing that all these winning IPO's have in common?
"Simple. One word. Growth ," said Cramer.
"Last year, the IPOs with real, sustainable, unquestionable growth were the best performers, and this is a dynamic that should continue in 2013. I don't expect the market's appetite for growth to be easily sated."
Call Cramer: 1-800-743-CNBC
Questions for Cramer? madmoney@cnbc.com
Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
More From CNBC
- Cramer: Is It a Problem That Stocks Are at 5-Year Highs?
- Lightning Round: Heckmann, Nokia & More
- Apple or Samsung: Who's Cooler Now?
Related Content
- Cramer's Game Plan: 12 Stocks to Watch
- New IPO for the Dogs, Says Cramer
- Earnings Deluge: What's Jim Cramer Watching?
- Cramer: Secret Bull Story in Food Niche
- Cramer: How Apple Stock Can Reverse
- Cramer: This 'Poised to Be Best in Dow'
- Cramer: Investors 'Not Fair' to Apple