Beware Bears Pooh-Poohing Buyout Binge

Someone's telling jokes on us. Right next to articles about leveraged buyouts of Archstone (pricey apartments), Avaya (so-so telco equipment) and computer resellers (CDW) is an article in this morning's Journal about how the buyout kings are getting more cautious.

Huh?

Who are they kidding with this kind of article? What faux motivation is there for this kind of story amidst all of the nutty buyouts and potential buyouts that greet us this very morning?

Even within the article there is a lot of gibberish fromvarious sources. There have been no deals gone bust in five years so one has to go bust, says a source; we have to be careful that we don't pay too much says another, adding that they have regrets that they didn't pay enough for a deal just a few years ago.

It is enough to make you want to sell stocks if you own them for a potential takeout.

Which is really the point of most articles about LBOs, articles that I have been reading for several years now. These are the articles that would have had you sell dozens of stocks way too cheaply, from Daimler Benz to Equity Office Properties from Clear Channel to First Data.

I am sick of those articles. I am sick of this article.

The only good news? These scare pieces and their ilk have brought short positions too large for this market to handle.

Amen.

Random musings: I just took a call last week on Mad Money talking about how overvalued CDW was! So much for value. ... Amazing, every time a mineral acquisition idea comes up you hear about BHP and Rio Tinto, but it is everyone else who bids!

At the time of publication, Cramer had no positions in stocks mentioned.

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