Cramer's Stop Trading! 2 IPOs With the Right Themes at the Right Moment (4/14/11)

by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Thursday April 14.

Zipcar (ZIP), Arcos Dorados (NYSE:ARCO), VFCorp (NYSE:VFC), Deckers (NASDAQ:DECK), Weyerhaeuser (NYSE:WY), Supervalu (NYSE:SVU), Safeway (NYSE:SWY)

Investors who got into the Zipcar (ZIP) and Arcos Dorados IPOs were winners, with the stocks up 56% and 24% respectively. The IPOs were at an attractive price for retail investors and were low enough for the stocks to pop; "both had the right themes at the right moment, and brokers wanted people to make money." Cramer sees a second day move, and those who hold the stock should sell at the end of Friday: "It is a rare deal that goes up on day three."

With the perception that commodities are going to stop rising, VFCorp (VFC) and Deckers (DECK) are seeing some upside and are close to their 52-week highs. "Supervalu (SVU) and Safeway (SWY) are not up idly either," Cramer said.

Lumber prices have fallen 25% on the delay of Japan's reconstruction and the feeling the tragedy is ongoing. However, China has been buying lumber aggressively, which should be good news for Weyerhaeuser (WY).

Finally, Cramer says domestic drillers are on fire and should not be sold just because the price of oil is coming down.


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