German sandal maker Birkenstock is preparing to go public, with an expected valuation of $10 billion and pricing shares in the $44 to $49 range.
Despite the company's product being heavily featured in this summer's "Barbie" movie, CNBC's Jim Cramer cautioned investors against buying the stock right after the IPO. In fact, he advised investors to stay on the sidelines, calling the initial feeding frenzy "too expensive" and a risky move.
Cramer acknowledged Birkenstock's solid growth and profitability but questioned its longevity as a fad.
With big-ticket investors already buying 42% of the available shares, he warned against buying the stock in the open market and suggested waiting for the price to cool down before investing.