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NEW YORK (TheStreet) -- Disney (DIS) - Get Walt Disney Company Reportshares are off over 1% Tuesday after a report from Morgan Stanley on television bundling that increasingly does not include Disney programming. 

In particular, the report says many so-called skinny bundles aren't including the Disney Channel or ESPN, which are a big component of Disney's revenue, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Stop Trading." 

Disney DIS data by YCharts

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Yes, this is clearly bad news for Disney, but he is confused by the report because the analysts expect Disney to generate $6 in earnings per share for 2016, Cramer said. If that's the case, why should investors sell?

Cramer is a long-time fan of Disney and says that $6 a share in earnings would be very strong. In addition, there will be catalysts to drive the stock even higher, including the release of the newest Star Wars movie. In addition, Disney also generates a lot of free-cash flow.

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.