GE Brings Net Stocks to Life

This rally stems from all the speculation on General Electric's Net acquisition target.
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You see this Net rally? You know what it is about? It hit me like an anvil ripping through my bald pate: It's GE (GE) - Get Report, stupid! This Xoom.com (XMCM) bid/no-bid/mulled bid was by General Electric, according to XMCM. And it didn't go through!!

So everyone is playing. Who is next? Whom is GE going to buy? And they are thinking, well, GE wants to dominate whatever business it is in, so who is dominant in the Web? Let's go buy dominance, thinking that GE will take us out. Even lowly

Lycos

(LCOS)

is benefiting from this speculation..

GE is another company that discovered the Net post-

Pittman

. BP, before Pittman, and AP, after Pittman, is how I look at the Net. Before Bob Pittman came to

AOL

(AOL)

, it wasn't clear whether AOL was going to pay offline or offline was going to pay online. It wasn't clear who had the upper hand. Pittman eliminated that question. You have to pay AOL. And

Yahoo!

(YHOO)

. And everybody else. The Net has the upper hand. Heck, the Net has both hands!!

Now GE is scrambling, too. If GE scrambles, some eggs get broken.

So the chase is on to find out whom GE wants to buy. And there goes the

DOT

to record highs.

Somehow, I don't have an image of Jack Welch coming in at the top of the tulip market or the South Sea Bubble. Guess we have further to run.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long America Online and Yahoo!, although positions can 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

letters@thestreet.com.