Empresas do Estado cortam mais de 5 mil milhões à dívida

[Ulisses Pereira]

"Expensive Stocks Aren't Automatic Shorts"

By James J. Cramer
03/04/2003 02:00 PM EST



"Let's go short some expensive stocks. That has to work, no? Sometimes I think, when I see the climbs in eBay, Expedia, Amazon and Yahoo! ,arguably the most expensive stocks in the market, I wonder whether Buzz and Batch are back -- those two lovable dogs -- with a short-only fund. I think these stocks are being shorted in the same way that those two jokers went long the PMC-Sierras and the Applied Micros and Aribas at the top.

Amazon and eBay are making the numbers. Because of that, the owners refuse to sell and the short-sellers just keep shorting and covering.


Yahoo!'s harder to explain. It shouldn't be where it is, but because it tells a good story, the longs hold on and, again, the shorts figure it has to blow up.

Expedia? Well, that's just the generic short story, a travel stock in a market that says travel will soon stop because of the war. Because of that, hedge funds trying to isolate stocks to bet against seize on Expedia as a "thinking man's short." To me it is a short nightmare, a secular bullish story -- cheap way to travel -- masked as a short-term bear play on the war.

So because of the shorts, when we rally, these stocks rally hard. And when they go down, the shorts buoy them and cushion the fall.

The result? Four great longs.

Got to call 'em as I see 'em. Doesn't hurt that every other article on the site is negative, as far as I can see!"

(in www.realmoney.com)