Jim Cramer -- Kythera Biopharmaceuticals Is Proving the Bears Wrong

NEW YORK (TheStreet) -- Shares of Kythera Biopharmaceuticals (KYTH) are up 4.1% on Wednesday, even after the company cancelled its appearance at a conference hosted by Goldman Sachs.

The $1.3 billion biotech company is perhaps best known for its "fat-buster" drug, according to TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio

While many investors could interpret the cancellation as bearish news, investors see it as bullish because it could mean another company is looking to acquire Kythera, he said on CNBC's "Stop Trading."

KYTH Chart
Kythera Biopharmaceuticals KYTH data by YCharts

He added the cancellation could've stemmed from a million different things but the fact investors chose the bullish assumption shows the power of so many mergers and acquisitions taking place, he said.

Everytime investors get bearish, something happens that makes you go "wow" and start investing again, Cramer concluded.

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

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