Those investors who applied Cramer's theory in late 2012, when Disney reported earnings last time, probably have a smile on their face as wide as Disney's Cheshire Cat.
That's because they likely hit the buy button when shares declined on a revenue miss reported in November.
"The last time when Disney reported, the company delivered a good looking quarter, but not perfect. They didn't provide the blueprint that people were looking for with the purchase of Lucas Films for $4 billion. Plus there were worries when it came to the future of ESPN," Cramer explained.
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At the time Disney said revenue had increased 3.2 percent to $10.78 billion from $10.43 billion a year ago, but fell short of the $10.92 billion analysts had expected.
Consequently, the stock, which had traded as high as $53 before earnings, plummeted to $47.
"I thought the whole sell-off was insulting to Iger," said Cramer. "I thought most analysts, traders and investors showed a remarkable lack of faith."
However, those investors who kept the faith and bought were ultimately rewarded.