When it comes to earnings, take your time to read through the entire release, don’t just look at the headlines, Jim Cramer said Thursday.
The “Mad Money” host pointed to Continental Resources as an example of how you can get burned doing that. The domestic oil producer reported earnings that were $30 million dollars shy of what some analysts expected. What was the immediate response? The stock sold off in after-hours trading on Wednesday night and this morning opened down 63 cents at Thursday’s open.
“But if you just took a deeper look at this quarter, you would have realized that selling the stock was a mistake,” Cramer said. “There are more important metrics here, like production.”
Continental Resources reported that it increased its full-year production growth forecast to between 57 and 58 percent, and its proved reserves by 20 percent and reported around a 76 percent production growth for the quarter. Cramer believes this is why the stock shot up today.
To learn more about the company and where the industry is headed, Jim Cramer sat down with Harold Hamm, who is the Chairman and CEO of Continental Resources and who also happens to be Mitt Romney’s energy advisor. Watch the video to see the full interview.
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