And speaking of TSC.com, Cramer returns and guess who plays a prominent part in one of his first columns?
"....But what Berko captured correctly, more than anything else that he did last week, was the angst of having to be long the Redbacks (RBAK:Nasdaq) and the Brocades (BRCD:Nasdaq). Forgive me for saying this, but I hate these stocks the way I hate anything I want a ton of but know I can't have. These stocks are cheesesteaks from Gino's. They are Ben & Jerry's (BJICA:Nasdaq) hand-scooped double cones. They are a dozen Krispy Kremes.
They taste great. You can handle a couple of them. But if you have too many of them, you get sick to your stomach and puke them out.
The stock market, when it finds merchandise it loves, immediately prices it so high that only those with a charter to own massive growth at any cost can afford to own them. I tend to blame the go-go mutual fund families for this. They run so much money now that they can't just get long 25,000 Brocade and have it impact performance. They have to own 250,000 Brocade. To get that, they have to sweep the Street. Once the 250,000 shares are bought, the stock is so expensive anyway that you can't justify NOT buying any more.
In other words, if you paid $100 for Brocade, which is absurd by any measure, what the heck is the difference if you pay $200, or $300 for that matter? Market cap no longer means anything, nor does price-to-earnings multiple. They are all off the charts. Which means that any marginal dollar you take in as a mutual fund manager can go to buying more Brocade because, what the heck, it is so high already that the perpetual mutual fund owner obviously doesn't give a darn about price.
What Jeff feels but didn't say is that guys like us think that the Brocades of the world now are simply notches on the way to a couple of mutual funds attempts to get to 40% or 50% years, or even higher.
Look at it like this. If you have no discipline, lots of money and a good marketing department to continue to ensure that you have more money, you can build a portfolio of Brocade, Redback, Red Hat (RHAT:Nasdaq), and a couple of other hot ones and literally keep them in the air until year-end. In fact, a half dozen funds may be doing just that. If they make it to year-end with these stocks, they will be on the cover of Money magazine, be on CNBC and, heck, get written about in TheStreet.com. ......""
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