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Don't Doubt Disney

The Walt Disney Co. missed out on Tuesday’s rally thanks to a Citigroup downgrade that Cramer called “dead wrong.” Now investors have a chance to pick up a great long-term investment on the cheap, he said.

Citi flagged Disney on the supposed weakness of theme parks due to high energy costs, weak housing and slowing consumer spending. But Cramer made two important points as to why he thought the analyst’s reasoning was wrong: This division only accounts for 22% of Disney’s entire business, and it’s a bit late to be worried about the macroeconomy.

“Why is this guy only starting to worry about the economy after the Fed’s emergency three-quarter point rate cut?” Cramer asked. “He downgrades Disney only after we turned the corner, after we bottomed?”

The best defense for Disney, though, is Chief Financial Officer Thomas Staggs’ immediate response to the downgrade, saying theme parks were doing better than a year ago. Pali Research was so impressed the firm upgraded DIS the next day.

Cramer said he likes Disney for the next 12 to 18 months – and the next ten years. He was even confident enough to recommend Homegamers get in ahead of the Feb. 5 report.

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

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