Redback Networks, Inc. (RBAK) Message Board

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Technology Stocks : Redback Networks, Inc. (RBAK)

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To: J.Y. Wang who wrote (800)	8/15/1999 3:17:00 PM
From: Wolverine	Read Replies (1) of 1956

<<Do you really think RBAK is worth a market cap of almost 5 BILLION dollars?>> Love is blind. fnews.yahoo.com Aug 13, 1999 Discipline and the Stocks Everyone Loves By James J. Cramer So now Red Hat (Nasdaq:RHAT - news) joins Redback (Nasdaq:RBAK - news) and Juniper (Nasdaq:JNPR - news) among Wall Street's most loved. These are stocks that apparently make people insensitive to price. Investors just don't care about price issues with these guys. Periodically the market gets a bead on a couple of stocks and just doesn't let up. We saw it in Remedy (Nasdaq:RMDY - news) and Clarify (Nasdaq:CLFY - news) . We saw it in Wellfleet, Synoptics and Cisco (Nasdaq:CSCO - news) . We saw it with UUNet and Spyglass (Nasdaq:SPYG - news) . And, of course, we saw it with Yahoo! YH OO:Nasdaq, Excite and that mob. Understand the force behind this: mutual fund love. Sometimes it knows no bounds. A couple of funds will buy these stocks every day with every marginal dollar. They will build positions in them and gun them. That's how some of these funds play. (I am not including Copper Mountain (Nasdaq:CMTN - news) and Brocade (Nasdaq:BRCD - news) , but don't email me. I see the mutual fund crush on those stocks, too.) I like these companies, but I actually think about valuation. That's the worst mistake you can make in the short term, but it's quite logical in the long term. Right now we're in the short term. I am trying to modify my "mistake" by keeping small positions in these stocks and not getting shaken out by the 15- and 20-point up moves that happen for these. But talk about rough! The toughest thing in the world is to not blow out of an overvalued stock that is up 10. That is the definition of discipline in this market.

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