What makes you think I care about
per se? A few days ago I posted a
piece trying to understand the strength in Quantum. We got a ton of responses, but many of them were incredulous that I should even care about this company. Why bother?
One, in order to build the proper mosaic about an industry you have to care about all of its components, not just the ones you like or are interested in. Quantum makes a huge amount of product which goes to a large number of important companies. If I can understand why Quantum is rallying, I may be less eager to sell my
when Steve Ballmer makes cautionary comments, or is quoted out of context. Quantum can be a Rosetta Stone to a quarter's tone of business in the industry.
Two, while I enjoy the puzzle of trading, I am fascinated by the action in stocks in general. Here, I can only compare this to when I used to be in love with baseball and I would see some .212 hitter go 4 for 4 and I would want to know what happened. Change of stance? Luck? What gives? That's how I felt about Quantum going up. Voyeuristic knowledge base, I guess. Can't help myself. Drives everybody in the office crazy.
Three, when stocks go up on bad news, it is often the last of the bad news. If that is the case, a ton of risk is taken out of the situation and I want to look at the whole group.
Finally, what the heck, had I really found out the answer -- I don't think I have yet -- I might get long it next time it revisits that level when it preannounced, as that now amounts to a pretty solid floor for the future.
: As I took the trading day via Airfone on the way back from Orlando, I was struck that as long as we are in the "every six ticks" of bonds mode -- every six ticks up, the market goes up and every six ticks down it goes down -- that it is so, so hard to have any conviction and you can only own the stocks that you feel you would want to buy if the bonds were to go down even more than that. I still own the bonds, I am still very unleveraged in them, though, and I will buy still more if they go to 6.25%. I am not going to admit "defeat" per se, because it amounts to a point and a half loss so far, but I pay much closer attention to
Padinha now than I do to virtually anything else on the site. Shows what happens when you put your money where your mouth is.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund had no positions in any of the stocks mentioned. 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