Why is tech so strong again? Because the companies at the Robbie Stephens conference are all telling great stories. It looks like a couple of events have coalesced to make tech into a beautiful thing this quarter.
First, wireless has broken out. The commercializing of wireless Internet is happening now, and it is generating giant orders to semiconductor companies that make key pieces of the wireless business. Second, Y2K spending had crimped a lot of investment spending. That is now roaring back, and lots of people are seeing it. This is a huge factor.
Third, lots of managers are still learning these stories. We know this because of the two-stage presentation nature of these tech conferences. The first stage is the public PowerPoint overview done in the big meeting rooms. The second is the quieter breakout. You don't go to the breakout unless you know the story because it will be nothing but detailed gibberish.
People are jamming into the big meetings, but the breakouts are relatively small. That's a sign, a big sign, that we are still early in this move. When the breakouts are jammed, that means we are late in the game.
There are so many new companies out there that portfolio managers are just beginning to get their arms around them. Trust me, once they do, they will buy, not sell.
Get ready for a wave of initial public offerings of hot areas within hot areas. When a doggy company like
is able to triple its stock price by offering shares in one of its divisions, you can bet that the bankers will start scrutinizing each division of every company in the universe to see which ones are the next
. ... This biotech move is starting to drive me crazy. I keep putting off our
biotech rotisserie league draft because I don't want to come in when the market is roaring. But each day a negative occurs -- the other day
had some earnings glitch -- and the stocks aren't brought down.
Today we have the negative news in the papers about a
stroke drug. If this story doesn't break the back of the move momentarily, then we will just have to hold the darn thing this week.
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 stocks mentioned. Cramer's fund may be long or short certain stocks in his biotech or B2B rotisserie leagues or TheStreet.com New Tech 30 index. 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