Another trending industry right now that is perhaps not as red carpet glamorous, are garbage stocks.
"The garbage business is on fire in this country, and unlike the smell of a real trash fire, I find the odor of a stock like Waste Management to be very pleasant right here," said Cramer.
When the economy improves, that means people are producing more garbage. This is good news for a stock like Waste Management, which has 252 active landfills and 300 transfer stations. It delivered an 8 cent earnings beat from a 59 cent basis on Tuesday, sending the stock up 5 percent.
Does the company think it will go higher, along with the economy? To find out, Cramer spoke with Waste Management CEO David Steiner.
"When you look at construction around the country, you see particularly in the chemical corridor…the reindustrialization America is coming back. We are perfectly positioned to take advantage of that," said Steiner.
Now Cramer thinks it is time for a little earnings education because it is seriously fishy when stocks such as Skechers and Columbia Sportswear report earnings and then shoot through the roof immediately following.
"The mystery of how these stocks can make major moves right in front of your eyes needs to be unlocked for you to understand how the stock market really works. Yes, it's really that important," said the "Mad Money" host on Tuesday.
There really are two reasons that hold the answer to these questions. Cramer's first reason is that both Skechers and Columbia did very well in the latest quarter, thanks to new product innovations and excellent sales.
The "Mad Money" host said that many hedge funds and brokerage research houses use different third-party information services in order to predict the health of a company and the direction of the stock.
The problem with these sampling services, according to Cramer, is that they have frequently underestimated sales and produced inaccurate results. Thus, the moves in both Skechers and Columbia last week were a result of hedge funds' desperately reaching for a stock to cover their short sales that were created due to faulty information.
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