Cramer: Facebook Boosting IPO Momentum
NEW YORK (TheStreet) - The IPO market is HOT and it's not all froth.
This week IPOs including organic foods company Annie's(BNNY) , hospital mobile communications company Vocera(VCRA) , and mobile advertising company Millennial Media(MM) all popped big when they began trading in the open markets this week. Jim Cramer attributes this to two key issues, the first is the looming Facebook IPO and the second is low expectations going into the IPOs.
Many institutional investors are very interested in getting involved in the Facebook IPO which is expected in May. Cramer says these investors are buying into recent IPO issues and holding the stocks, to put themselves in a good position with the underwriters so that they can get a piece of the Facebook IPO. This is increasing demand for current issues and helping to drive the spike in their initial trades.