Jeff looks at the quote, a wilted down 2, and says, "Everybody owns Cisco."
"OK," I say, "what's the deal with
? Why is it getting hit again?"
Jeff: "Everybody owns it."
?" I ask.
"Everybody owns it."
Yep, that response is the kind of universal reason for why many stocks are getting hit. All the big money is already so long these classic growth names that they don't need to buy any more. Everybody is full up.
Nobody has "room" to buy.
Of course, this analysis is strictly subjective. You don't hear managers in public ever say this stuff. You don't read people quoted as saying, "Oh, EMC went down 'cause everybody is already long EMC."
But that's what managers say to other managers when they can't find a specific reason for the action they have on their screens. When quality companies roll over day after day, we are know that there isn't any one thing wrong.
It's just that everybody has too much of the good ones.
So I am on this
conference call this morning in my endless pursuit of hearing more info about carbonic pricing, and most of the Q&A is devoted to why Praxair hasn't rolled out an aggressive Net strategy yet! Jeeez, give me a break. Not everything's a .com.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Cisco. 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