
Jim Cramer -- Don't Overreact to Latest News on Rolls-Royce, Freshpet
Shares of Rolls-Royce Holding (RYCEY) were falling 19% on Thursday following tepid comments about its aerospace business.
Investors shouldn't focus on the stock or worry about trying to trade the U.K.-listed company, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment.
Instead, they should focus on the company's comments, and be careful not to try to extrapolate too much information from them. Meaning, Rolls-Royce's weakness in jet engines should not have a negative impact on General Electric (GE) - Get Report and United Technologies .
Rolls-Royce RYCEY data by YCharts
Cramer explained that while all three of these companies are the business of building jet engines, their market shares and segments are not equal. "Rolls-Royce is out of the mix on narrow-body planes," he said. Instead, it is "stuck" with building engines for the Airbus (EADSY) A-350, which is not selling that well.
So bottom line, investors shouldn't overreact to Rolls-Royce's company-specific issues, as aerospace remains strong.
Turning to Freshpet (FRPT) - Get Report , the stock is down 30% after the company reported a slightly larger than expected loss, but topped revenue expectations. However, management had to lower its forward guidance.
Again, Cramer is looking at the read-through of this report, saying investors shouldn't be too quick to dismiss consumers' discretionary spending or the entirety of the natural and organic food space.
Freshpet does have a great natural product for pets, and its CEO is very earnest, but Cramer says the product can be a turnoff as the pet food must be stored in customers' refrigerators -- alongside their own food.
He finds Blue Buffalo's (BUFF) product as a more attractive option.
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.










