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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: taxman who wrote (30209)	9/27/1999 4:28:00 PM
From: t2	Respond to of 74651

OT taxman, AOL--street.com article kind of sums up how i felt about buying AOL this morning. Please forgive me Mr. Gates for buying enemy stock <g>. BTW-that site on options volatility did not work for me. I am going to try again later (from the etrade website). thestreet.com Bear Claws Are Burning By James J. Cramer 9/27/99 3:49 PM ET You are a bear. You are short America Online (AOL:NYSE). You know already that subscription growth is spot on. You know ad revs are kicking in. But you figured that Microsoft (MSFT:Nasdaq) was going to go free, give its system away. You were banking on AOL losing that key revenue stream. What do you do now? If I were you, I would cover. Your story is now wrong. But that's not the way the bears think. They like to come up with more reasons to stay short. That's why we are selling none of the AOL we bought last week. We think all of the negatives are now played out. Broadband, U.K. free access, Microsoft Network woes, insider selling -- everything has been priced in. Normally when we have a ramp like this we trade around the position. We let some of the stock go that we were lucky enough to buy right before the explosion. Not this time. We smell bear claws burning, and we don't mean the kind that you get at Dunkin' Donuts. -------------------------------------------------------------------------------- James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Microsoft and America Online. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may 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 at jjcletters@thestreet.com. -------------------------------------------------------------------------------- Send letters to