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Cramer: Could this weakness be a buying opportunity?

(Click for video linked to a transcript of this Mad Money segment)

The Mad Money host always suggests watching for dips. But is the weakness in Perrigo really a buying opportunity.

Shares slipped 3% after the company reported earnings which left the Street underwhelmed.

Perrigo said it earned $1.57 per share if one-time items are excluded. Revenue increased to $967.2 million from $831.8 million. Analysts were expecting earnings of $1.56 per share and $1 billion in revenue,

Cramer, however, thinks investors should look beyond these results.

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Perrigo is the biggest maker of generic drugs for major retail chains in the United States, including Walgreens and Wal-Mart and Cramer believes people will continue to favor store brands and generics, even as the economy bounces back.

"I have a suspicion that the Great Recession changed the way people think," he said. That is, Cramer believes people have generally become more frugal and are less likely to overpay for anything.

Ivan Bliznetsov | E+ | Getty Images

"And during the past 5 years I think a growing number of people have come to understand that generic store brands are the same darned stuff yet these products cost a whole lot less," Cramer said. "Therefore, I believe the boom in private label is here to say."

Cramer often likes to put money to work behind fundamental themes such as this – and ordinarily that would be reason enough to consider Perrigo, However, he says there's something else – and it's big.

Over the last decade Perrigo has expanded its overseas business. Earlier this year, Perrigo bought Dublin-based Elanfor about $8.6 billion. The deal will allow Perrigo to gain royalties from drugs Elan helped develop, particularly the multiple sclerosis fighter Tysabri.

And, due to the acquisition, Perrigo may be able to reduce tax liabilities substantially by shifting its geographic status to Ireland.

All told, Cramer thinks the company could profit handsomely in the years ahead.

And even though recent earnings don't seem to confirm Cramer's outlook, the Mad Money host says, at this point in time, "I'm inclined to give the company the benefit of the doubt. I think it would be wrong to get off now."

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