Jim Kramer of CNBC on Friday presented a list of five new public stocks that he believes investors should add to his portfolio.
While it still sticks to its rules that buyers must stick to companies that make money and produce tangible things, “that’s a huge demand for a company that just rolled out”mad moneyThe host said, adding that he was inspired by Renaissance Capital CEO Bill Smith’s newsletter to examine IPOs.
“They are usually in a growth mode, so it makes sense for them to invest in their business rather than wasting money on dividend payments,” Cramer said, advising investors to look at the free cash flow of these new businesses as an indicator of their ability to be profitable.
Kramer said he looked at initial public offerings from 2021 and 2022, along with 151 stocks in CNBC’s Post SPAC index, to find companies that met the following criteria:
- Are companies large enough to be worthy of distinction
- Had a positive free cash flow in 2021
- Trade less than 40 times your free cash flow
- It is not the Chinese, Russian, or Cypriot stocks that would have a geopolitical risk to own
Using the above criteria, Cramer trimmed the traditional IPOS listing from 2021 and 2022, along with 151 stocks in CNBC’s Post-SPAC Index, to 380 larger stocks. Then he cut 42 where there was not enough data to perform an analysis. Then, after identifying 125 stocks with positive free cash flow in 2021, and narrowing the list further, he landed on five stocks that could be buying opportunities for investors.
Here is the list:
“If you’re willing to be disciplined in your style, you have my permission to navigate the ruins of last year’s IPOs and mergers,” Kramer said.
Kramer back in January Highlight 12 of the newly minted stocks He thought it could be profitable.
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