When looking to profit from an initial public offering, Jim Cramer on Monday reminded his “Mad Money” viewers to “never confuse a trade with an investment.”
Be it Groupon or Yelp , many of the recent Internet IPOs were classic trades, Cramer said. In other words, these stocks were only worth buying if you could get in on the actual offering and then immediately sell in the after-market. Unfortunately, though, many investors couldn’t get shares in the IPO, so they bought shares in the after-market. That’s a major “no-no,” Cramer said.
Going forward, Cramer recommended investors consider other Web-based companies that are going public in the foreseen future. He thinks there are several undervalued IPOs on the way.Page 1 of 2 | Next Page