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Cramer's 'Mad Money' Recap: Buying on Bad News (Final)

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NEW YORK (TheStreet) -- "In this market, bad news is just another way to say 'buying opportunity,'" Jim Cramer told the viewers of his "Mad Money" " TV show Monday.

He said that over and over again stocks have gotten pummeled on bad news, only to see the buyers swoop in and overwhelm the panicking sellers.

Case in point, Kulicke & Soffa Industries (KLIC), a semiconductor equipment maker that delivered severely disappointing guidance. Cramer said normally bad news like this would take down the whole semiconductor group, but this time the group rallied, with Applied Materials (AMAT) ending higher on the news.

Then there's John Deere (DE), a stock that also delivered negative guidance and garnered several analyst downgrades as a result. Cramer said these downgrades were the cue to buy, as Deere has added $7 a share since the news.

Cramer said there are countless other examples. Kids' apparel retailer Gymboree (GYMB) was downgraded last week on disappointing same store sales, only to rally hard this week on news the company is going private. JC Penney (JCP) got hit for $19 a share on disappointing news at the end of August, but has added back $14 a share in the weeks that followed.

And the list continues, said Cramer, from Boeing (BA) to Nucor (NUE). The pattern is to get hit on negative news, then skyrocket afterwards.

Cramer said it's time to forget about what the short sellers are up to and focus on the positives. Bad news is a buying opportunity.

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