That's right, these two red-hot
wannabes started out as itsy-bitsy half-billion-dollar companies when they went public in May.
Teensy-weensy companies that would be ideal for the small-cap managers.
Check that: Make that
would have been
Both became billion-dollar companies the day they went public, which still puts them in the realm of small-cappers.
Consider this timeline. Last month Brocade hit $2 billion; that's hardly a small-cap. And today it is trading at $3.4 billion. No way that is small-cap. No way at all.
Redback is even hotter. It hit $2 billion in May, $3 billion last week and $4 billion this week! That's large-cap material. I can't believe these stocks. (And as I
said yesterday, we put a little of each -- 5,000 and 3,000 shares, respectively -- on and have vowed not to buy them again unless they each drop 20 points.)
These are staggering runs. These companies overnight have gone from being small-cap darlings to mid-cap hotshots to big-cap kings.
I think what you are seeing right now is that big money is getting involved in these companies in a way they never used to because they don't want to miss them -- even if they
This is an amazing development. If you aren't paying attention to it, you have to. There have to be a dozen mutual funds fighting among themselves to get stock in. It is a war. Market makers are frantically trying to find stock. The consequence: These two equities became large-cap stocks overnight.
And now the small-cap funds, the ones that used to discover these things and nurture them for years before the
of the world got involved, have to kick them out.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Cisco, Brocade and Redback. 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