Sometimes when the bears get caught with the honey pot, it's quite a joy. That's how I feel about Best Buy (BBY - commentary - Cramer's Take) now that it has reported fourth-quarter earnings that beat expectations. The Best Buy bears were everywhere before this quarter, particularly in the press.
The rap against Best Buy, to make it very clear, is that, "Because it was down, it will stay down, because it's been going down and it will go down regardless of what they say because it is a down stock." Don't chuckle -- there was never a bear case beyond that. The stock was cheap and business has been strong.
Today those who subscribed to the theory that it was going down because it was going down -- I mean no disrespect to the bears but I have read their rationale for the short in a gazillion different venues and it always amounts to that -- have gotten their comeuppance. They are experiencing some pain. Now I believe that when the bear has his claws into something, whether it be Best Buy or Charter (CHTR - commentary - Cramer's Take), which I also am watching, it pays to try to press it down one more time. That way the bears can say, "You know what? It doesn't even stay up on good news."
The problem with that logic, of course, is that it's just as simplistic as the logic of, "It is going down because it is going down." It is equally ineluctable that when good news happens, it is, alas, good news, and doesn't become "bad news" just because the stock goes down a little after rallying.
Random musings: Best Buy reporting a great number is No. 2 on my magical checklist of range-breakers for the market. Wow, the thing is working! Two down, eight more to go!
At the time of publication, Cramer was long Charter Communications.James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column to jjcletters@thestreet.com. Listen to Cramer's RealMoney Radio show on your computer; just click here. Click here to buy Cramer's latest book, "You Got Screwed!" Click here to order Cramer's autobiography, "Confessions of a Street Addict."
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Sometimes when the bears get caught with the honey pot, it's quite a joy. That's how I feel about Best Buy (BBY - commentary - Cramer's Take) now that it has reported fourth-quarter earnings that beat expectations. The Best Buy bears were everywhere before this quarter, particularly in the press.
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