Cramer comments on TBR
thestreet.com
Wrong! Dispatches from the Front: Get Off the Phone
By James J. Cramer
9/4/98 2:31 PM ET
"Sell 10 Telephone [T:NYSE]," I shouted to my trader,
Mark Kantor.
"Which one?" he yelled back.
"Doesn't matter," I said, sadly.
Yes, the great telemania/telefriend/telestock period is now
behind us and the pickings have never been slimmer. All day
I have seen "raids," or massive attempts to get anything
telephone down, but particularly the national telephone
stocks and those that supply equipment to them.
Perhaps the most visible outgrowth of this era is that stocks
like Lucent (LU:NYSE) and Tellabs (TLAB:Nasdaq) have
become dramatically overowned. I did some work on Tellabs
today trying to make a case for it, and all that I came back
with was, "This one-time highflyer is now for sale
everywhere."
Lucent is no different. I have a sign on my desk that says, "I
Love Lucent," a tribute to the stock and the TV show. But
that era is past, and now I own puts underneath my Lucent
to stem the losses.
But nothing is working worse than the international
telephone companies, particularly Telebras (TBR:NYSE
ADR), which has gone from the world's best story to the
world's worst story overnight -- without anything happening to
it other than an increase in value. When the bear stops
growling, I am sure all these stocks will be among the great
bargains of a lifetime.
But right now, "Sell 10 phone!"
Random musings: Oh, so Cambridge Technology
(CATP:Nasdaq) says it has a "little slip" in business. Is that
a teeny-weeny slip or an itsy-bitsy slip? These companies
are masters of spin control, aren't they??
James J. Cramer is manager of a hedge fund and
co-chairman of TheStreet.com. At the time of publication
the fund held puts options on AT&T, Lucent and Telebras
stock, though positions can 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 by sending a letter to
TheStreet.com at letters@thestreet.com. |
