ON tonight’s MAD MONEY, Cramer featured the IPO frenzy. He already reviewed IPGP, so he also discussed Guidance Software (GUID).
Everyone is fascinated with IPO’s, but Cramer says he will tell you which to buy and which to sell and prices to get in and out. He will be the final arbiter on these.
1) review comparable public companies; 2) See if it is a hot issue; 3) are they desperate or are they in fine shape looking for security; 4) are they late to the party and trying to catch the end of a craze; 5) decide when to sell beforehand; 6) use limit orders.
Guidance Software (GUID): Digital investesigations and cyber forensics is the sector. He embraces it, and thinks the price is right, expected at $12.50 to $14.50 per share and he thinks it is worth buying at $18.00 or under, but he’s a bear at $20.00. He thinks they’ll have a $1.4 Billion marketplace in 2009 and they are the gold standard in the sector. They sell to law firms and law enforcement, plus many huge corporations. They are now approved as evidence approved for submission in the US legal system. Cramer thinks they are not desperate and they aren’t late. He likes it up to $18.00.
Jon C. Ogg
December 12, 2006
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