Cramer- "Hold Net Stocks Through the Sector's Pause&quo
Enviado: 11/11/2003 20:15"Hold Net Stocks Through the Sector's Pause"
By James J. Cramer
11/11/2003 12:27 PM EST
"Hey, some of these momentum stocks have no momentum. What fuels them, then?
Good question. Right now, I am watching the big four, Yahoo! (YHOO:Nasdaq - commentary - research), Amazon (AMZN:Nasdaq - commentary - research), eBay (EBAY:Nasdaq - commentary - research) and InterActiveCorp (IACI:Nasdaq - commentary - research) (the latter of which I own) totally stall out here.
The issue is, are they stalling, are they resting or are they competing?
Every stock has to rest after a big move except stocks that are part of short squeezes that are manipulated up. So I get the pause.
I bought a ton of InterActiveCorp shares last week betting that I was getting Barry Diller at a discount to where he was, and that his company, 10 points off the high, is a good buy. I also have in mind that Google's going to come public and pull up his stock as well as the others.
But one of the key strengths of the Net story is the lack of competition among the players.
That was fine when Amazon stuck with books, eBay with used merchandise, InterActiveCorp with tickets and Yahoo! with paid search. Now we have Google going head-to-head with Yahoo! on paid search. We have Yahoo! going head-to-head with Amazon on auctions. We have Autobytel (ABTL:Nasdaq - commentary - research) going head-to-head with eBay on cars. And now Orbitz is going to have a war chest to go after InterActiveCorp.
These all are high-multiple stocks and competition is a multiple killer. So does it mean the pause turns into a stall?
Actually, I think we are going to catch a break. All of these companies should have a good Christmas season with this economy as strong as it is. That means I think they can go higher despite the competition. And the Google factor still looms.
Maybe I am rationalizing; I own one that's down.
Maybe, though, everything is resting, and we will get another big leg up before the Fed tightens and then it will be time to cut back these positions.
Either way, not yet. "
(in www.realmoney.com)
By James J. Cramer
11/11/2003 12:27 PM EST
"Hey, some of these momentum stocks have no momentum. What fuels them, then?
Good question. Right now, I am watching the big four, Yahoo! (YHOO:Nasdaq - commentary - research), Amazon (AMZN:Nasdaq - commentary - research), eBay (EBAY:Nasdaq - commentary - research) and InterActiveCorp (IACI:Nasdaq - commentary - research) (the latter of which I own) totally stall out here.
The issue is, are they stalling, are they resting or are they competing?
Every stock has to rest after a big move except stocks that are part of short squeezes that are manipulated up. So I get the pause.
I bought a ton of InterActiveCorp shares last week betting that I was getting Barry Diller at a discount to where he was, and that his company, 10 points off the high, is a good buy. I also have in mind that Google's going to come public and pull up his stock as well as the others.
But one of the key strengths of the Net story is the lack of competition among the players.
That was fine when Amazon stuck with books, eBay with used merchandise, InterActiveCorp with tickets and Yahoo! with paid search. Now we have Google going head-to-head with Yahoo! on paid search. We have Yahoo! going head-to-head with Amazon on auctions. We have Autobytel (ABTL:Nasdaq - commentary - research) going head-to-head with eBay on cars. And now Orbitz is going to have a war chest to go after InterActiveCorp.
These all are high-multiple stocks and competition is a multiple killer. So does it mean the pause turns into a stall?
Actually, I think we are going to catch a break. All of these companies should have a good Christmas season with this economy as strong as it is. That means I think they can go higher despite the competition. And the Google factor still looms.
Maybe I am rationalizing; I own one that's down.
Maybe, though, everything is resting, and we will get another big leg up before the Fed tightens and then it will be time to cut back these positions.
Either way, not yet. "
(in www.realmoney.com)