The role of bids in this market can never be underestimated. Take this Republic deal. It comes right on the heels of a statement by
that the acquisition game is over. It may be over for Bank One, but maybe it is just beginning for international banks. And how many people told me that Texaco couldn't get a bid because of all of these restrictive refining deals?
Bids energize a market. They remind the bears, who often like to lie on breaking sectors, that you can't push down stocks with impunity. They remind stock investors why we pay prices for stocks at all: because they are businesses valued by others in business. And, in the case of Republic, they take out supply -- supply that gets expanded every day by the IPO market -- so the reduction is much needed.
Of course, occasionally a bid comes along that de-energizes the market. The
certainly did that. Today could be the first day I can recall where a bid that fell through might drive a stock up!
So, if you thought Friday's action left the debate unclear, two bids and a cratered offering make being bearish a tough row to hoe this morning.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Lycos, although positions can 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