Jim Cramer was in awe of how quickly Deere managed to transform itself, seemingly overnight.
The strong dollar stabilized and many agricultural commodities began to recover, but until recently, Cramer wasn't excited about Deere. It seemed that every time it reported, even when it had a good number, the conference call commentary would be so negative that the stock would tumble.
That all changed when Deere reported a stunningly strong quarter last Wednesday. Deere's two main divisions did better than expected, and it was clear that the company has done a better job of managing its inventory.
One aspect of the stock's explosive move was that it was a classic short squeeze, Cramer said. As of the end of October, it was the fifth-most heavily shorted stock in the S&P 500. So when Deere reported a good quarter, the short-sellers panicked and were forced to buy back the stock to cover their shorts.
"Short-squeeze or not, Deere has got a lot going for it now, and I wouldn't be surprised if the earnings estimates are still too low, which means the stock remains a buy if we get more weakness," the "Mad Money" host said.