just found this
As I see it
Yesterday I mentioned that Fidelity was rumored to be buying Gateway (GTW) "sloppy." It led me to do a little research and it turns out there are a handful of tech stocks with deteriorating fundamentals, which I have been harping about, that tend to be rather strong on down days. I am sure that this is just a coincidence but: Microsoft (MSFT), Intel (INTC), Dell (DELL), Cisco (CSCO), Yahoo (YHOO), IBM (IBM), Novellus (NVLS), Apple (AAPL), Xerox (XRX), Micron (MU), Texas Instruments (TXN) and Gateway (GTW) all are stocks that should be affected negatively by the trouble in the world. Yet they seem to be impervious to bad news lately.
Low and behold, Fidelity is either the first or second largest shareholder. Now they could be buying more of the stocks that they love the most, but it is curious that these stocks behave suspiciously well going into the last couple of days of the quarter. We discovered an even bigger coincidence about three years ago that was written up in Grants, when Jeffrey Vinik was still the portfolio manager of Magellan. Then there were some very strange perturbations at the end of the month.
This may all be pure coincidence, but folks who have a lot of money with Fidelity should beware: They may be getting great performance simply because Fidelity is large enough to continue buying the same names. If so, at some point when Fidelity can't continue to disregard the fundamentals or it runs out of dough, it will be a disaster. Food for thought.
William A. Fleckenstein <fleckenstein@go2net.com>, special to StockSite.
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