Jim Cramer has always encouraged the tried and true method of doing homework on stocks. But sometimes, all it takes is simply watching an interview on "Mad Money" to get a good feel of what is about to happen.
Large agricultural equipment maker Deere sold off dramatically on Friday following the confirmation of a weak quarter. However, in Cramer's opinion the clues were all there when AGCO CEO Martin Richenhagen appeared on the show recently and described a weakness in sales.
"There was no reason in heck why you should have thought things were going any better for Deere than AGCO. You just needed to listen," the "Mad Money" host said.
Meanwhile, many investors have been grumbling over the sorry numbers produced from mall based department stores because it is so hard to compete with Amazon. Sure enough, Nordstrom confirmed it had spent too much money versus what it can make in its online division.
At the same time, VF Corp guided down on sales when it reported. It was clear to Cramer that clothing just isn't selling like it used to, and if it is, people are buying it on Amazon.
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"No wonder the Internet giant went up $9 today. You just can't compete against the darned thing unless you have very specialized merchandise, which few seem to do," Cramer said.
Considering that Verizon already purchased AOL and said it would consider buying Yahoo, Cramer was not shocked when Yahoo formed a committee to consider the overtures from Verizon and others. It was not a huge revelation to those that saw the McAdam interview.
"I think Yahoo goes higher, but again, let's not be surprised here," Cramer said. (Tweet This)
So while 2016 has been a nightmare year thus far, Cramer wants investors to keep their eyes open for trends. When an executive comes on the show and tells you exactly what they are about to do, it should not be a surprise when things unfold as predicted.
"We should profit from what they have to say, or at least avoid any potential losses. And in every one of these cases, I think that the possibilities and opportunities were there to be had," Cramer said.