Jim Cramer said on Mad Money that he is inclined to stick with EquipmentShare.com Inc. despite the stock falling from just under $30 to just under $20 since his January recommendation. Cramer noted the company’s capital-light business model, where it buys equipment, sells it to institutional investors, and leases it back before renting to customers. He acknowledged the call was bad, as United Rentals rallied 20% over the same period, but pointed to a strong beat-and-raise quarter with management citing unprecedented demand. Cramer cautioned that the lockup on insider selling expires on July 22nd, which could cause another pullback.
EquipmentShare.com Inc Class A Common StockCramer notes a strong beat-and-raise quarter with management citing unprecedented demand, but also warns of insider selling lockup expiry on July 22nd.
United Rentals Inc