The stock hasn’t looked back since, and it was even upgraded byGoldman Sachs on Thursday.
How on earth was it possible that Burlington pre-announced weaker than expected numbers and the stock skyrocketed?
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“This is what happens when Wall Street gets too negative — you had so many people anticipating even worse numbers in the expectation that a company that sells winter coats would get obliterated after the heat wave lasted through Christmas,” Cramer said.
Cramer thinks many money managers were shorting the stock. But when there was too much negativity surrounding a stock, it does not need much good news to send it higher.
Ultimately, when investors become complacent in negativity, Cramer said that is the time when it could take off.
“I bet this company is starting to do very well here, although I think you should wait for a pullback before you do any buying, giving that the stock just roared today on that big upgrade from Goldman,” Cramer said.