Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (8441)	9/21/2001 2:18:00 PM
From: energyplay	Read Replies (1) \| Respond to of 23153

Cramer says funds aren't telling all about redemptions ... ********************* Actions Speak Louder Than Buybacks By James J. Cramer 09/21/2001 01:27 PM EDT Phantom buybacks. That's what we used to call them. They were these buybacks that got announced but then simply languished. I am seeing them everywhere since the attack on America. I hear people on television talk about the buybacks and I read on certain sites that companies are buying back stock, but let me tell you, I am not seeing much real buying of stock at all. In fact, unlike 1987 when companies just sat there and bought their stock, these buybacks are anemic, and the SEC has let those companies control the open and close! That's amazing. It is worrisome that companies aren't buying stock back more aggressively. To believe the "rap" coming out of TrimTabs -- which I don't pay much attention to, even though others seem addicted to it -- we should be experiencing a stock implosion upward as buybacks and mutual fund contributions kick in while underwritings disappear. Actually, at least this week, I am hearing the exact opposite. The buybacks have been tiny and not aggressive. The supply has been merciless because of the redemptions. Understand, if you rely on the spokespeople from mutual funds, you will never hear about redemptions. Ever. These folks remind me of the Pentagon during Vietnam. They are always winning. Unlike the Pentagon, they are the largest advertisers for the financial media. So their spokespeople go unquestioned. I live in the real world. I have a network of friends at all of these firms, and the switch out of stock funds into cash funds was more pronounced this week than any week I can ever remember. You wouldn't know that at all from anywhere else, though, because it is an unwritten rule with the rest of the media -- don't question the spokespeople. Makes me sick. So, minimal buybacks plus maximum redemptions gives us this miserable market. Don't be misled or misinformed. That's the real story.