This article originally appeared on Jan 30, 2014 on RealMoney.com. To read more content like this plus see inside Jim Cramer's multimillion-dollar portfolio for FREE... Click Here NOW.
I love companies that stick it to the bears. Under Armour (UA) CEO Kevin Plank came on Mad Money not long ago and made bold claims about what he could do with his superior products and how he could challenge Nike (NKE) because of his technological edge.
What did I hear from the bears? How about endless chatter about how he had too much inventory and declining gross margins. The bears swore that the multiple was way too high and was, therefore, ripe for a fall.
Then you look at today's action and you realize that the stock was cheap after all on next year's earnings and that the sucker play was to short it on valuation. I always urge you never to short on valuation.
Or how about Caterpillar (CAT)? The company confounded the bears with a terrific quarter and announced a beast of a buyback. But nobody upgraded it, and the bears went out of their way to say that it remains a big short. All I can say is, "WRONG!"
But you want to know who stuck it to the bulls? How about those clowns at ADT (ADT) who paid an activist board member $44 per share for his stake and now, after a totally blown quarter that the activist was no doubt privy to, the stock sits at $30?