So it's a good short gone wrong.
Finally, what can be said about Barnes & Noble? You have a billion-dollar company that might be getting a billion dollars from Microsoft (MSFT) for a product that's been crushing the company, even as it is regarded as technologically superior to Amazon (AMZN). But a newly invigorated Microsoft, which has an investment in the device already, seems to want the whole device, as long as it isn't stuck with the bookstore chain.
I know Borders was a loser. I know the book business has never been tougher, courtesy Amazon and the Kindle. But is Barnes & Noble worthless?
Hard to believe.All three of these are crowded shorts, meaning that so many people have a group-think against them that they are being gang-tackled. But all three have been elusive and have broken away from the tackling and now are off to the goal line. I know many short-sellers are telling me "just you wait" to see what happens to these companies. I come back and say, "Wait for what? It's already happened." That's the tough thing about being intellectually right and practically wrong. It's never easy to admit you are wrong, especially when you think you are the smartest investor in the valley. But it has been known to occur many times since this bull market began. Still, these extremes are a little frightening to watch, and you know, in the end, that those who are fighting these moves became cannon fodder for the moves themselves, as they have to bring in their shorts, if only to give back what's left of the money they are investing from people who thought that these managers were really smart. They were. By half. At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, had no positions in the stocks mentioned.
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