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Technology Stocks : Broadcom (BRCM) -- Ignore unavailable to you. Want to Upgrade?

To: Stoctrash who wrote (5941)	6/7/2001 10:41:44 AM
From: md1derful	Respond to of 6531

Stocdrivel: You are NOT Freddie Kruger are ya?? And here, I thought you were an impartial brcm naysayer...typical doctor doc

To: Stoctrash who wrote (5941)	6/7/2001 2:06:53 PM
From: Raymond Duray	Read Replies (2) \| Respond to of 6531

Hi Fred, I think you might get a smile out of this from theStreet.com: thestreet.com Getting Inside a Hedgie's Mind By James J. Cramer 6/7/01 11:35 AM ET Techs keep fighting for air while hedge funds are struggling with the fact that stocks won't go down. Traders are, by nature, pack animals. When they see that Broadcom (BRCM:Nasdaq - news - boards) is going up on bad news after Cypress (CY:NYSE - news - boards) went up on bad news (and keeps going up!), they get scared to death that they are missing something. They can't sit back and say, "Maybe it is all short-covering," after it goes on like this for a couple of days. They just get long. They get long with no conviction because they know that the fundamentals aren't any good. And they become envious of those who have covered already or knew better than they did. You have to put yourself in the mindset of a high-fiving fund manager who is short Broadcom and short Cypress and is saying, "What the heck, I guess I have to cover and get long." That short-seller feels completely beaten up and doesn't know what to do. So, he ends up buying out of disgust after covering out of shame. That short-seller might have thought Broadcom was going to go to the 20s today. He probably was in disbelief that anybody was buying it in the morning only down a couple, let alone up. He is probably suicidal. So he chases his own tail and gets long up here, when it probably is too late, because in a day or two something negative will occur and it will actually whack things because the stocks would have moved up too much. This counterintuitive pattern of stocks rallying on bad news drives anyone rigorous crazy because it becomes impossible to make money and do homework. The person who did the best homework on Broadcom is probably losing the most money today!