When Jim Cramer looked at the action of the on Tuesday, the first thing he thought was that every dog has its day, and that day was Tuesday.
The biggest dog that wagged its tail was Micron, the low-cost DRAM and flash memory producer that was down almost 50 percent for the year as of the close on Monday. And while Cramer thinks the company is a terrific manufacturer, it has done nothing but act like a falling knife.
"One thing we know about manufacturing is if you are making commodities and the market for those commodities is in a decline, tamping down demand, while you go full out pumping supply, your average selling price is going to plummet and so are your earnings," the "Mad Money" host said.
Everything changed Tuesday when investors learned that Tsinghua Unigroup reportedly wants to buy Micron for $23 billion, even though the company was worth $19 billion on Monday.