just validate the whole Red Hot movement with this
Cerent buy? When you shell out $7 billion in Cisco stock -- which, in the world I live in, is better than cash -- you are making a statement that you don't want to have to pay even more once the public gets a hold of the darn thing.
We had been watching Cerent around here for some time. In fact, in my work on my weekend piece about the Red Hots, I was going to include it as the next likely Red Hot. Now it gets taken out by Mac Daddy Cisco at a huge premium to what the momentum funds probably would have paid for it on opening day.
Suddenly we may have to stop laughing at what we are paying for the
And go buy more of them.
Amazing. Guess there is no such thing as overpaying when it comes to phone-equipment stocks.
Another wild day ahead. I can't wait until 9:30. Let's start trading now!
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Cisco, Juniper Networks and Redback Networks. 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