This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Did Jake Winebaum Overpay for the Rights to

Anyone who thinks Jake Winebaum overpaid for the rights to when he bought it Tuesday for $7.5 million is a moron. No, check that, a stupid moron.

Join the discussion on Cramer's Latest , go to the Red Hots Forum, or visit our B2B Forum.

Winebaum runs eCompanies, an Internet business incubator. His company bought from Marc Ostrofsky, a Houston businessman who had paid $150,000 for it three years ago. I know that's a great rate of return. But Winebaum got the best of him.

Yet this morning, in the Los Angeles Times, Naseeem Javed, president of ABC Namebank, a company that helps companies select names, says that Winebaum overpaid. "Tomorrow you could have or or," he is quoted as saying. "Whoever is buying is playing on very thin ice."


Had I even known this one was for sale, I would have paid $10 million for it. Still would. Winebaum got a great deal because this site has a lot better ring than VerticalNet (VERT), Commerce One (CMRC) or Ariba (ARBA), the three names I am playing in the Rotisserie League . (I am actually long VerticalNet and Ariba.) He can go to the capital markets right now with that name and a business plan and he will be able to raise several hundred million dollars. What Javed doesn't know, and Ostrofsky may not either, is that B2B is going to stay hot for some time. (And I am not saying that just because Barron's Online said this morning that the group may have peaked -- although that would be fittingly ironic.)

Winebaum's move was a stroke of genius. I look forward to drafting his company in the supplemental rounds.

James J. Cramer is manager of a hedge fund and co-founder of At time of publication, his fund was long VerticalNet and Ariba. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs