Caterpillar Inc. (CAT): "Children Should Behave," Before Selling, Says Jim Cramer

We recently published 10 Stocks Jim Cramer Discussed As He Blasted China’s Hostility Towards The US. Caterpillar Inc. (NYSE:CAT) is one of the stocks Jim Cramer recently discussed.

Caterpillar Inc. (NYSE:CAT) is one of the largest industrial and construction equipment companies in the world. Its shares have gained 15% year-to-date despite dipping by 3.5% after the firm’s latest earnings report. In his previous comments about Caterpillar Inc. (NYSE:CAT), Cramer has attributed the firm’s strong performance to tailwinds from President Trump’s legislation and the firm’s role in data center construction. This time around, he criticized sellers after the firm’s second-quarter earnings:

“I’m seeing things that are frankly incendiary. Like Caterpillar down 25, and the stock  finishes up. We have a job to do. Which is to try to explain to people how stupid. . .I mean to try to tell people, how people make money.

“Like I told people, listen to the Caterpillar conference call. It’s about inventories, but no, they traded it off earnings. They are children. Children should behave!”

The day before, Cramer had discussed his reservations about Caterpillar Inc. (NYSE:CAT)’s sellers in detail:

“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.”

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READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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