The market has had a monster run since the middle of February, but Jim Cramer finds that stocks are still incredibly undervalued. There could be tons of reasons why the market moved up such as the Fed on hold or relief of stress in the oil patch. But in Cramer's opinion, these reasons only expose that there are thousands of stocks with different prospects and different valuations. "I think that a lot of this move has to do with the fortunes of individual companies, and how much more their stocks may be worth than where they are currently valued," the "Mad Money" host said.
Cramer: Stocks are incredibly undervalued
Incredibly undervalued, we're not convinced of that, especially considering this:
Stock based compensation as part of executive pay is widespread. The common practice on Wall Street is that it is added to earnings, we can see no valid accounting reason for this. It's probably the main driver between the growing gap between GAAP and non-GAAP earnings. That gap is often substantial, artificially boosting earnings, it's basically a bubble.