Cramer says you can learn from the dot.com bubble blow-ups and know how to avoid repeats in many hot stocks of today. A stock he likes is InnerWorkings (INWK). It’s up 87% since its August IPo. What Cramer is evaluating is if it has room to keep running or if it is overbought and hyped. The company is a printing services outsourced provider. They hook up 2700 printing companies with their customers and it is the new incartion of the cyber middle man with a regional to national play. That means its growth can’t be held in check. 60% of its clients are in Illinois and they are hiring more sales people.
The analysts are all four underwriters, so it hasn’t caught the attention of the street. There are 2 buys and 2 holds and Cramer said the next guy that picks up coverage 70% is held and will be free to sell in Feb 2007. He said if you buy it you may need to swap out of it and then back into it after that lock-up.
I personally remember this IPO as one that showed most of its growth because of acquisitions, but Cramer didn’t say that. It ran 15% at the IPO.
The end market for the company is huge and fragmented with printing. Cramer said the company’s proprietary software gives it an edge. Shares are up almost 5% at $17.60 after Cramer touted it, and its 52-week range is $9.60 to $18.58.
Jon C. Ogg
December 19, 2006
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