Cramer guts SKYM in his AM commentary -
" Wrong! Three Net Sour Balls
By James J. Cramer
If you want to know how the Net "bubble" will end, it will be because the second- and third-tier net plays screw up. In just one day, we had three classic examples of the type of screwups that give an industry a bad name . . .
First, we saw that theglobe.com (TGLO:Nasdaq) secondary on top of the
split. Need a shower after that one. Talk about the old sucker punch.
Then, after the close, we had two sour balls. First was this announcement from Skymall (SKYM:Nasdaq), one of the early Net-as-press-release plays,acknowledging that its Net strategy is slow to develop, despite all of the hoopla. Ouch.
Second was the tease takeover of Xoom.com (XMCM:Nasdaq). Xoom just did a secondary on Friday. The buzz around it, which continued today, was that the company could be acquired. The company did nothing to discourage this talk. But just now we learned that whatever talks there were just ended short of a deal.
What is going on here? These aren't things I want from companies. I don't want hype and split, or hype and disappointment, or hype and no deal."
Full report at www.thestreet.com |
