Boy, have things changed. When these Net companies first got these giant multiples and market caps, we were told that they would have to be put to work. These companies were meant to make acquisitions and get bigger, get mass.








did exactly what they were supposed to do. They made acquisitions to expand, to please the client, to become better companies.

And they were crushed.

I think it happened because these stocks were artificially high to begin with and when they issue shares to buy other companies it destroys the tightness. It allows the short squeezes that still existed to end. It forces a collapse because the squeeze ends.

Another reason why the Nasdaq is so treacherous. You don't know what is up because of a squeeze and what is up because it is worth being up.

That's too hard a call for this trader. That's why I would rather be in Pepsi.

James J. Cramer is manager of a hedge fund and co-founder of At time of publication, his fund was long Pepsi. 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