A few weeks ago, the news broke on a Friday that the
Department of Justice
had won an important victory in its battle with
. It was one of those victories that was so big and important that the regular news media went to work on it. When the big-dog media guns train themselves on business issues, look out below. They only get involved to magnify the pain and fear. That Friday they did plenty of it. They found commentators from around the globe to put the nails into Microsoft's coffin.
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I remember because I was on
Fox News Channel
that night, having been in the studio for our filming of
show. I wanted in, because I was buying, buying big and I wanted the world to know that I thought this was the big buying opportunity that we needed to get long Microsoft.
Wow, was it a tough thing to do. The gloom was so thick and the predictions so dire that I clearly sounded like the lightest weight of the bunch with my pollyanna buying-opportunity spiel. The boys in Washington and New York looked at me as if I was some sort of Mister Softee Moonie incapable of saying anything bad about the company.
(Ironic, given that I support
reasoning and think the case has already had a positive impact on American technology.)
I found myself thinking that if I hadn't been a dyed-in-the-wool optimist who truly believed in this opportunity, I, too, would have succumbed to the negativity.
But I didn't. I simply bought more.
The stock was at 87. It went out at 115 on Friday. Keep that rally in mind the next time the gloomers take over. We have had a great run here and we're certainly due for a pullback sometime in January.
I urge you to remember that gloom around Microsoft after that decision. The rally from that bottom may be the greatest single rally I've ever seen (MSFT was one of the biggest percentage gainers just last week) and it would have been avoided had you only paid attention to the gloom boys in the national media.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of the original publication, his fund was long Microsoft. 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 firstname.lastname@example.org.