“The market’s stupid. It’s moronic. It’s imbecilic. Dumb as a bag of hammers and slow as molasses, which, alas, is your edge because anything that idiotic can be gamed by you at home,” said Jim Cramer on CNBC’s “Mad Money.”
So what’s Cramer talking about? Well, Cramer noted that news from truck engine maker Cumminsdrove the whole market lower on Monday thanks to a mid-day release entitled “Cummins Increases Dividend by 25 percent; Updates 2012 Revenue Outlook.”
At first glance, it seemed like great news. After all, Cummins had paid 40 cents a share, but it will now pay 50 cents a share. And while one might guess the stock would have rallied on the dividend boost, it actually plummeted $8.53 to finish at $86.91 a share.
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The problem, Cramer said, is that Cummins’ outlook was “seriously disappointing.” Cummins has “out-engineered everyone in the game,” Cramer said, so it’s presumed that “the world must be slowing rather dramatically" for this “best of breed” name to report flat revenues instead of the 10 percent increase it expected. It lowered its full-year revenue outlook for 2012 and now expects 2012 revenues to be in line with 2011 compared to its previous guidance of an increase of 10 percent.Page 1 of 3 | Next Page