Buy when Wall Street ignores ‘bad news about textbooks’

CNBC’s Jim Cramer on Thursday gave investors the green light to buy shares of valuable companies that reported bad news, yet managed to keep their shares intact.

“The lack of new stock broken the moment you buy it, and the terrible declines in high-value companies, have combined to create an environment in which Wall Street is willing to overlook some flaws. Not all. But some,” themad money‘ said the host.

“You’re free to overlook one or two flaws, and because stocks have crashed so hard in anticipation of multiple price hikes, you can be bold enough to buy a discount product without much hesitation. I think we’ve come to that level,” he added.

Cramer highlighted several instances in which investors ignored “textbook bad news” from a company, noting that stock nvidiaAnd the Microsoft And the sales force They all fell after reporting disappointing financial results or expectations but managed to rise.

Cramer said he thinks Wall Street’s new tolerant attitude may be due to lower initial public offerings while value companies are declining.

“We have finally come to a point in the stock cycle…where underwriters are no longer pumping bilge, these killer IPOs for which there is absolutely no appetite,” he said. “Enough money has been lost in the new, so why go back—why not go back to the old?”

Disclosure: Cramer’s Charitable Trust owns shares in Microsoft, Nvidia, and Salesforce.