"Maybe there's just too much of a vested interest in having the homebuilders go down," Jim Cramer said on his
"RealMoney" radio show Tuesday.
About a month ago, most of the remaining bulls in this sector decided that they couldn't defend the stocks anymore and downgraded the group, Cramer said.
"That's how all bottoms I have followed are formed," Cramer said. "You get everyone hating a stock at the bottom, and all the sellers are out."
At this point it's never been a pattern for market players to change their minds and become positive on a group. Instead, "they dig in their heels" and "stick by being negative," he said.
However, analysts and market players have not bothered to look at how homebuilders are acting, Cramer said. The fact is, these stocks are going up or staying flat on bad news.
And as people who regularly listen to Cramer know, when a stock doesn't go down on bad news "you have to sit up and take notice," he said.
Learn from the patterns of
, he said.
"I know this stuff because I've made the same mistake these guys are making," Cramer said. "In many ways it would be better for my image if I stayed negative, because consistency is valued more than being right."
They would rather stick with the wrong position than "flip flop," he said.
Cramer said that if he were an analyst who recently downgraded this group or a short-seller for homebuilders, then he would have a vested interest in seeing these stocks go down.
"The press analyst short-selling complex has a bias against being positive," Cramer said. "It's in their interest for the stocks to go down as they are shorting them."
When he was a journalist, Cramer said he would never let the facts get in the way of a good story. But now that he's in the business of making people money, he'd rather be right and inconsistent.
From now on when people ask Cramer why he likes
Procter & Gamble
so much, he said he's gong to point to an article in
The Wall Street Journal
that says P&G is selling its Sure brand of deodorant.
Sure is one of those deodorants that you pass in the aisle without thinking twice about it, he said. The fact is this brand, "was not cooking," and Proctor & Gamble knows Sure is not worth retaining.
"A great company prunes so the rest of its brands can grow stronger -- that's the Procter & Gamble way," Cramer said.
Right before the great divide which occurred during the period May 8 to May 11, when the cyclicals peaked and the Procters started coming on, the stock was hurting badly even though the company was doing well, Cramer said.
In addition, there were rumors spread by short-sellers that
was not performing well. But what was really happening was a "vicious rotation," he said.
When the next rotation comes, Procter & Gamble "deserves a premium multiple," Cramer said.
To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.
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