They can't stay away. They only know to buy these kinds of stocks, these rough-and-tumble gappers of 15 points or more.
. We remain long it. The ride down has been incredibly painful. Worse than the Big Bad Wolf at Williamsburg. Positively nauseating.
But once the selloff ends, the buyers come back. They take the fluff out. They slash the margined players. And then the institutions that love this stuff come right back in and take it up again.
For me, a relative old-timer, it seems so capricious, kind of like "Will they ever learn?" But to
Matt "Coiled Spring" Jacobs
, these stocks are just that, coiled springs, where the fundamentals are great but the shareholder base isn't. After a selloff is the best time to buy because all of the marginal holders are gone. You get your biggest bang for the buck right now.
He has history on his side. The
rallies hard after rate hikes, we have found, and we don't think this time will be any different.
And he has the fundamentals. You really want to be in
? Can you really trust the fundamentals of
The only thing he doesn't have is valuation. But the valuations are
than they were a week ago, so the stocks are
and should be
bought more aggressively
Darn that seamless logic.
We are holding the
biotech rotisserie league on the day of the
secondary pricing (maybe as early as this week) as we think that could be the best entry point.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long VeriSign. 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