Maybe those guys who do this
thing aren't so stupid after all.
This had to be their worst nightmare. They created $40 billion in market cap of a stock by simply adding it to their roster of 500 companies.
Join the discussion on
While we all revel -- and in some cases -- sell our
, remember that inside the wall of the
, there have to be officials right now saying "I told you so."
As in, you can't add illiquid large-cap names like Yahoo!, with shareholders who can't sell fast enough (as opposed to institutions which can) and not ruin the integrity of the S&P and the funds that mimic it.
Think about it. Will
be any different? Or
? Won't we have to see this travesty portrayed over and over again? And in my mind, long Yahoo! as I was an am, it was a travesty. This stock was simply manipulated up by traders all day and then dumped into the hapless hands of funds that must buy at the close. Is that anyway to run an airplane?
I sold some Yahoo! yesterday at the bell. It was painful. Anybody who has read me or seen me on TV or brushed up against me on the sidewalk knows that I love this stock. My first appearances on
I dwelled on this stock. My last appearances on
, I dwelled on it. I have argued hard for it repeatedly on a whole bunch of
Fox News Channel
But the manipulation up got to me yesterday. The pickings were just too great. I had to take advantage of the moronic process by which money is managed by index.
But today and tomorrow, I hope to buy it all back!
I am buying
down 12 points off this
. Seems miserably overdone, especially because Nokia has a winning browser formula.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Yahoo!, Nokia and 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