That's why Micron shares have risen from $5 a share in 2012 to $31 today as demand for memory has slowly been rising while costs have been falling and, for the first time, there aren't competitors racing to fill the void.
The facts have changed for Micron, Cramer concluded, and today we saw the first analyst taking notice.
GNC vs. Vitamin Shoppe
Not all earnings disappointments are created equal, Cramer told viewers as he re-examined the vitamin stores, GNC (GNC - Get Report) and Vitamin Shoppe (VSI - Get Report), which last reported back in May.
Cramer explained that when GNC last reported, shares fell 15% on its poor results, taking Vitamin Shoppe, which reported the following day, along for the ride, down 5%. But unlike GNC, which really did have a horrible quarter, Vitamin Shoppe actually didn't do that bad and simply fell victim to GNC's results.The markets are treating both these stocks the same, Cramer said, and that should not be the case, as GNC's same store sales fell 0.7%, but Vitamin Shoppe saw a 3.6% increase in sales. GNC also touted the company's new loyalty program as a big growth driver but so far those results have been unimpressive at best. Cramer said that GNC has become too inconsistent and he's not a buyer. Vitamin Shoppe, on the other hand, increased revenue by 10.3%, has booming internet sales, up 17%, and sports a well-diversified product mix that doesn't rely heavily on the fickle diet products. Vitamin Shoppe also derived 25% of its sales from high-margin private label items, with plans to increase that number dramatically going forward. Trading at just 15 times earnings with a 14% growth rate, Cramer said Vitamin Shoppe is the new clear winner in group, and today's weakness gives investors a terrific entry point.