We are going with the barbell approach here, buying the techs that are getting shelled and taking the food stocks that are hanging around here, betting that the latter group is due for a massive revaluation.
Buying the foods is not easy. Most of the fundamentals ain't so hot. Take
-- which we are! Sare Lee is so slow and boring that it just cancelled a meeting to show its food processing plant because of
a lack of interest
. Hello? Doesn't that seem like something that knocks upside your head? When nobody is interested, I want to be interested.
Once again, the daytraders are probably saying -- why is
bothering with buying them? What the heck is that all about?
The answer is, when you are our size, you don't have any choice. We have to take advantage of the price break and get good stuff in. Take
. We like EMC very much. No near-term catalyst, but we like it. We have 15,000 shares on the sheets. We are buying 5,000 shares down. That's how we play it. Will we make money on this trade today? How the heck do I know? I don't think so. But, you know, there is tomorrow. And the next day, too, for that matter.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Sara Lee and EMC. 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