Cramer on Janus
Could Janus be panicking? Viacom (VIA.B:NYSE - news - commentary - research - analysis), AOL Time Warner (AOL:NYSE - news - commentary - research - analysis), Nokia (NOK:NYSE ADR - news - commentary - research - analysis), General Electric (GE:NYSE - news - commentary - research - analysis), Pfizer (PFE:NYSE - news - commentary - research - analysis) and Comcast (CMCSK:Nasdaq - news - commentary - research - analysis) are all down heavily today on major volume. They make up six of the top seven Janus holdings. Why panic now? Why panic today?
Well, how about this for a reason: Janus religiously tells what its positions are semiannually. Its semiannual moment of disclosure comes up in two days. We know that Janus has been selling these stocks all year. Wouldn't it be something if Janus wanted to be able to issue a statement saying it is totally out of all of these "losers?" Wouldn't that make a ton of sense?
Throughout this trashing of big-capitalization stocks, Janus has suffered the most of all mutual funds. Some of it is self-inflicted; only a moron hedge fund wouldn't shoot against Janus as it liquidated. (I know I wish I could have traded around. I have tried to bottom-fish in a couple of these Janus names and been killed!)
This company has no friends on Wall Street, having gotten lots of brokers short stocks on the way up. The world has wanted to shoot against Janus on the way down, and I have to believe that Janus had to be feeling the pain. Only by diversifying away from these behemoths and into more out-of-the-way places can Janus have any hope of restoring whatever greatness it has left.
That's why I think that Janus is bailing like mad, just mad. That way when the semiannual report comes out, you won't see any of these downers in the portfolio.
If you own shares in a Janus fund, you won't be fooled. You have the tire tracks of their exit all over your back.
But if you are thinking of going into Janus, you will like that they are now freed of these big chains.
Unfortunately for Janus, I bet these stocks bounce and bounce big come May 1. If I were shorting them, I think I would bring them in today and tomorrow, ahead of when the manic selling pressure just might disappear because the month is at last over.
***************
Makes sense since I see block sells all the way down.
Jack |
