~OT~ Mohan: Some CramerSpeak on the Net Wreck...FYI...
<<Wrong! Rear Echelon Revelations: Cold, Bloodless and All-Powerful
By James J. Cramer 6/14/99
Neither Stephen King nor Thomas Harris has ever seen something as
horrible as a forced sell of a Net stock. In fact, I have this vision
of King and Harris getting color for the villains of their next novels
by hanging over the shoulders of these clerks as they issued margin
call after margin call to brokers this afternoon.
Cold, bloodless and all-powerful.
Yes, the losses on the TheStreet.com Internet Sector index only gained
steam as brokers cashiered their clients' stocks to raise cash to meet
the calls. The selling goes unabated until the calls are met, and the
clients themselves are helpless to stop them.
Making things worse of course, was the news that eToys (ETYS:Nasdaq)
had less visibility in its business than when it did its deal. This was
not the day to announce that things aren't what they seemed a few short
weeks ago.
In the meantime, the cyclicals, heavily underowned by individuals,
mocked the losses of those riding the Internet crash -- and down 50%
does seem like a bit of a crash to me -- by moving up all day. The DOT
closes a point off its low, the Morgan Stanley Cyclical Index closes a
point off its high. Soon we will regard the cyclicals as safe because
they WON'T BE SOLD BY HANNIBAL THE MARGIN CLERK!
Imagine that.
Random musings: If you can handle it, I will be doing a Yahoo! chat at
5 p.m. EDT.
*****
James J. Cramer is manager of a hedge fund and co-founder of
TheStreet.com. At time of publication, his fund was long Yahoo!. His
fund often buys and sells securities that are the subject of his
columns, both before and after the columns are published, and the
positions that his fund takes may change at any time. Under no
circumstances does the information in this column represent a
recommendation to buy or sell stocks. Cramer's writings provide
insights into the dynamics of money management and are not a
solicitation for transactions. While he cannot provide investment
advice or recommendations, he invites you to comment on his column at jjcletters@thestreet.com. >>
****I think this post was pulled from Cramer's Online Chat this afternoon....
.<<Creme_Delacramer: Today was pure torture in Net land. I don't think it will end until a bunch of things happen though. I put up a six point checklist on TheStreet.com about what we need to see and point number one is: The deals must be cancelled. No more dot.coms for awhile. We are choking on dot.coms! >> |
