Colfax (CFX) is a Pure Play in Fluid Management -Cramer

May 13, 2008 9:23 AM EDT

On last night's Mad Money, Cramer highlighted a recent IPO, Colfax (NYSE: CFX), which open for public trading on May 8. After pricing at $18, which was above its expected range of $15-$17, Colfax opened at $22.50 but has since lost some ground and closed yesterday at $20.89.

Cramer said he likes Colfax as it is one of only several pure-play fluid management companies in a "vital" industry for the new U.S. economy. Specifically, Cramer named Flowserve (NYSE: FLS) and Robbins & Myers (NYSE: RBN) as comparable to Colfax.

The Cramerican President next turned his attention to Colfax's diverse portfolio, which he believes certainly makes the stock more attractive. Colfax sees about "44% of its sales from general industrial, 24% from commercial marine, 15% from oil and gas, 11% from power generation and 6% from the U.S. Navy."

Based on the valuations of Flowserve and Robbins & Myers, Cramer believes Colfax could move about 26% higher from current levels if the market allocates the same multiples as these two peers. At the same time, Cramer recommended waiting "at least a week before picking up shares of Colfax" as IPO's are often quite volatile.

Colfax Corporation designs, manufactures, and distributes fluid handling products, including pumps, fluid handling systems, and specialty valves that transfer or control liquids in various applications worldwide. [BCS]

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