Warning: Buying Clorox May Cause Burns

Is this actually an Internet stock? Hoo-hah!
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Clorox

(CLX) - Get Report

is freaking people out. You don't buy these kinds of stocks to go down 15 points. That's what the dot-coms are for!

How could this stock be down so much? Look no further than my

Switched Signals piece of July 1. Clorox is all about guidance. In this case this company made a series of acquisitions and predicted that it would rocket with them.

That guidance was -- let's see, how should I put it? Like, not so good? Or perhaps ... yes, here it is: WRONG!!

That misdirection play fooled the whole mutual fund defense and caught them blitzing the stock to 125. In the meantime the bears were wide open and Clorox hit them right in the hands with the long ball. Go Bruins!

Now the fallout is occurring. Oddly, I own some

P&G

(PG) - Get Report

puts, for no reason other than I thought the stock had run too far. Now I am hoping that P&G gets sold down so I can buy it. Clorox's problems are an opportunity for companies like P&G, not an obstacle.

Wow, give this Clorox a place in the DOT!

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was short Clorox and Procter & Gamble. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at

jjcletters@thestreet.com.