DexCom's devices, which do not require finger pricking, have a disruptive technology that caused the stock to soar. But at the end of February, when investors pulled away from cash flow positive stories and went to earnings per share stories, the stock plummeted. Another problem is the company has also added a lot of expenses because it is adding salespeople.
Cramer suggests following the stock because it provides an indication of when momentum stocks will come back to life. He expects the company to be cash flow positive in 2015 and could be earnings per share positive. Cramer says this stock is hated but if it gets love, then many other stocks will act well.
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