Shares of Micron (MU) - Get Report are down 1% Wednesday, but that's not as bad as some investors would have thought when they saw the news on Tuesday after the close. Micron announced it would sell $1 billion worth of stock, which will mainly be used to pay down over $400 million of high interest debt.
There was a time in Micron's history and in the stock market's history where Micron stock would tank on this sort of news, TheStreet's Jim Cramer said on CNBC's "Mad Dash" show Wednesday.
But that's not the case now, as shares are barely down. And you know what? Investors will be "clamoring" for this deal to hit the Street, because they know Micron is "going to have unbelievable numbers," Cramer reasoned.
Micron operates in a boom-and-bust cycle and by now, it was supposed to bust. But it's not and supply remains tight for its main markets. This gives Micron pricing power and is allowing the stock to soar higher, added Cramer, who also manages the Action Alerts PLUS charitable trust portfolio.
Sure the bullishness is a bit worrisome, Cramer acknowledged, but it's hard not to be when it's already pretty well known that Micron will have a great quarter.
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Watch the replay of Jim Cramer's full NYSE live show:
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At the time of publication, Cramer's Action Alerts PLUS had no position in any companies mentioned.