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Tags: jim cramer | ipo | picks | 2019

Jim Cramer: 4 2019 IPO Stocks Worth Buying 'Right Here, Right Now'

(Dreamstime/Yong-hian-Lim)

Thursday, 19 December 2019 09:04 PM EST

CNBC’s Jim Cramer says savvy investors would be wise to snap up four of this year’s initial public offerings.

He touts Lyft (LYFT), Kontoor Brands (KTB), Levi’s (LEVI) and Revolve Group (RVLV).

“This year’s IPO market has been a real roller coaster, but now that the dust has settled and many of these newly minted stocks have come down” these are worth owning, the “Mad Money” host said on CNBC..

He endorsed them for declining to more enticing prices.

“This year’s IPO market has been a real roller coaster, but now that the dust has settled and many of these newly minted stocks have come down, I’ve got to tell you: I like Levi’s,” he said, “Kontoor, Lyft and Revolve right here, right now.”

Meanwhile,  unicorns like Uber, Lyft and Slack may have had disappointing IPOs, but U.S. venture capital firms gave birth to a record number of unicorns in 2019, Reuters explained.

So far this year 66 venture capital-backed unicorns were minted in the United States versus 58 in 2018, according to market data firm CB Insights.

"I think there's too much money and multiples have gotten out of whack," said Aileen Lee, founding partner at Cowboy Ventures, who in 2013 coined the term "unicorn" to describe tech start-ups valued at more than $1 billion.

In 2013, Lee counted 39 unicorns minted since 2003 in the United States, or about four a year. The surge in the number of new unicorns is mostly due to the record amounts of venture capital being put to work, according to several venture capitalists, plus the desire among companies to stay private longer. Being a "unicorn" is a status symbol, and helpful for companies looking to stand out.

When hammering out investment terms, investors and company founders can stretch for a higher on-paper valuation by adjusting the amount of equity being sold or adding other terms, investors said.

CB Insights Chief Executive Anand Sanwal said he has noticed that many new unicorns are valued at exactly $1 billion. “Folks started openly acknowledging that, Hey, if I can get the billion-dollar valuation, it attracts talent, it attracts partners,” Sanwal said.

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InvestingAnalysis
CNBC’s Jim Cramer says savvy investors would be wise to snap up four of this year’s initial public offerings.
jim cramer, ipo, picks, 2019
356
2019-04-19
Thursday, 19 December 2019 09:04 PM
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