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Cramer: Weakness providing rare entry point?

Cramer often says investors need to be strategic buyers of weakness. Is this one of those times?

Jim Cramer can't help but wonder after shares of Korn/Ferry slipped more than 4% in Tuesday's session.

Korn/Ferry is a global talent management company that provides all kinds of services ranging from executive recruitment to leadership development programs. Cramer said the decline really startled many investors because earnings, which were reported earlier in the week, looked impressive.




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Specifically, earnings for the fourth quarter were 43 cents per share, 4 cents better than what analysts anticipated. The company also reported first quarter 2015 earnings guidance between 37 cents and 43 cents, in line with estimates. And Korn/Ferry reported record sales during its fourth quarter period, increasing revenue 5.5% over the previous year to $251.7 million, ahead of analysts estimates of $244.6 million.

The results appear to be somewhat impressive, yet the stock declined sharply. Why?

"I've pored over it, and I think people might be quibbling with the earnings per share number," Cramer said. "Korn/Ferry had a 7-cent tax benefit, so if you exclude that, the beat turns into a miss. Plus, the company's revenue growth is projected to decelerate and its operating margin declined versus the previous quarter. All of these factors may have made buyers skittish given that, going into the quarter, Korn/Ferry's stock was nearing a 12-year high."

Although the earnings may have confused Wall Street, Cramer has no qualms with striking while the Street is off-balance.

Looking at fundamentals, Korn/Ferry specializes in high-skill talent recruitment. "In this economy, those with the best credentials are very much in demand," Cramer reminded.

And if the stock is a tell for the high-skill job market, Cramer thinks Korn/Ferry is doing just fine. It's rallied 68% over the last 12 months.

"Plus Korn/Ferry is adding people. That means they've got a lot of business. And they always give conservative guidance," Cramer said.

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All told, Cramer doesn't think the thesis has changed in any meaningful way. Let the Street sell. "I think this weakness could represent a rare entry point to do some buying," Cramer said.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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