But as the managers at SHW explained, most of the paint being sold was for interior, not exterior use. The fact was, people sold when they should have been buying, Cramer said.
"This kind of stuff infuriates me because it's entirely possible for skepticism to morph into cynicism, if not outright nihilism," he said, "where the facts mean nothing and the only thing that matter is the ability to interpret them negatively."
Cramer said this type of misguided logic is especially apparent among apparel companies and retailers. "I hear over and over again that sales have been aided by warmer weather and that they would have been much lower if the winter hadn't been unseasonably warm." He said investors simply can't believe in the potentially strong pent-up demand for products.
Sometimes, the merchandise just sells well. "It happens," he said. "Companies can do well. Many people thought PVH was borrowing from spring sales with its terrific January, but then business improved in February and got better still in March!"
And Cramer said this mindset isn't restricted to retail. Alcoa and Owens-Illinois both reported terrific quarterly sales and earnings, but analysts are still in denial. He added that what they should be doing is focusing on the decreasing raw costs, rising glass demand and the dramatic rise in aluminum demand used in cars and in aircraft.Page 2 of 3 | Prev Page | Next Page