Jim Cramer Says to Always Wait for Caterpillar's Conference Call Before Doing Anything

Caterpillar Inc. (NYSE:CAT) is one of the stocks Jim Cramer put under the spotlight. During the episode, Cramer called the panic sellers who sell before the company’s conference call “morons.” He said:

“I’m about to have a book coming out, it’s called… How to Make Money in Any Market. One of my axioms is there’s never, never, never anything to do with the stock of Caterpillar when it reports until you’ve listened to the conference call. Do you know that when I was doing my final draft, I almost took it out. Why? Because I’ve said it so many times. I thought people would be bored by it. Sure enough, the CAT number prints this morning. I know the earnings are irrelevant because the stock trades on inventories and orders, which you don’t get until the conference call. But no, the negatives they want to get out so badly, they sell it down 20 points in pre-market trading, 20 points. And then what happens when they’re done? The stock’s then rallied 25 points from there… Why? Because the orders were great, because the inventories are low. Now, I have a word for these panic sellers. They’re called morons.”

Caterpillar (NYSE:CAT) designs and sells machinery and engines for construction, mining, energy, and transportation, along with related parts, services, and financial products.

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Disclosure: None. This article is originally published at Insider Monkey.