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To: bob wallace who wrote (1508)	6/4/2003 4:27:16 PM
From: Jack Hartmann	of 1822

Cramer is selling again :P It's OK to Push Yourself Away From the Table By James J. Cramer 06/04/2003 02:26 PM EDT URL: thestreet.com Over on Street Insight, my friend and colleague Jay Somaney is letting go some Yahoo! (YHOO:Nasdaq - news - commentary) . His simple reason is that discipline triumphs over conviction. I like his post on it very much because it reminds me of my sales in two names I like very much, Honeywell (HON:NYSE - news - commentary) and Raytheon (RTN:NYSE - news - commentary) . I have huge positions in these stocks and they are up six nicely from the bottom. I bought the stocks all the way down, although I was frozen in Raytheon because I mentioned it on the radio. My conviction in these stocks is very high. But discipline says if you have built giant positions lower and the market has shot up pretty much in a straight line, you have to take some action. Some action means taking some off the table even though you like the stock. This action is counterintuitive for most casual investors but it is almost by rote for a fund manager, which I used to be. You can't be riding around with full-boat positions of equivalent size after big runs for the same reason that you have to buy more as a stock gets hit if you like it. You have to be set up for the inevitable decline that can occur -- that's the discipline of the process. I am talking about this stuff because discipline doesn't destroy conviction and discipline doesn't cause you to sell a position. Discipline does force you to trim though, because it is hard to have as much conviction about a stock if nothing new has happened to it and it has had a big move. I know that many of you see me as a champion on this market. I am not denying that I like it, I am just saying that I like it less as it goes higher. One last thought on this. I wear a lot of suits. One of the brands I buy came in for sale last week at Neiman. I didn't really need a new suit, but the prices sure were tempting and the suits weren't tainted or going out of style. I didn't get there. The suit is now back to its old price. You can't get me to be a buyer there. Nor can I be a merchant; if I had bought the suit, I couldn't return it at the higher price. Stocks, though, are a different story. I don't need all of that Honeywell that I bought lower at this price. Unlike Nieman's, the market will let me return some. I bet Honeywell comes back on sale again and I can buy again. But if it doesn't? Just like the suits; I still got an awful lot of Honeywell to wear. *********** Too bad no one posted the gains cause most have been underperforming the market from my readings. :P Jack

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