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Investor Amnesia

The trader says you have to love the forgive-and-forget nature of investors. Just look at Reuters.

You have to love-love-love the forgiving nature of stock buyers when it comes to Net strategies.




: Here's a company that seemed to have a great and aggressive Web strategy three years ago, one where they intended to dominate the Web. I know -- I had a bunch of meetings with a terrific Net guy from there. Next thing I know, he is at

Internet Capital Group


and the Net strategy disappears.

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Then a new "great and aggressive" Net strategy came up: an alliance with


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. This was dreadful for everybody in our financial space because Reuters was now charging $1500 for a Reuters terminal with a newsfeed and then giving that same feed to Yahoo for free! The market loved that strategy.

Now Reuters has announced a whole new great and aggressive Web strategy, which seems a lot like the first one.

Each time these new and aggressive Web strategies were announced this stock jumped huge! This time Reuters got a gigantic bump, even though its strategy seems exactly like the one a couple of years ago. My take: Buy this stock. In another six months they could roll out a whole new and aggressive Web strategy and this stock could rocket to 200.

What a hoot! What a colossal, bountiful and amazing joke! You have to love this market. It has

no rigor


Random musings

: Beware of cheap stocks. Another guest on


talking about value stocks. Beware of the Sirens!

James J. Cramer is manager of a hedge fund and co-founder of At time of publication, his fund was long Internet Capital Group and Yahoo!. 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