Why News of theglobe's Secondary Offer Looks Bad

For Cramer, news of the company's secondary offering, following on the heels of Friday's split announcement, raises a lot of questions.
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Foul!

That's what I think about

theglobe.com's

(TGLO)

decision to announce a secondary today after news of a stock split on Friday.

That's not how you play the game. I am sure it is legal, but is it right? Both of these items could have been announced at the same time, giving the hapless buyers a chance to get in on the secondary. Instead, TGLO hits people with a one-two punch.

As I said last week, we are now hitting the six-month lockup of the most recent wave of Net underwritings. How these companies handle themselves will determine how long the Net rally can continue. This TGLO secondary on top of the stock split, to me, raises a lot of questions about how these new companies will handle themselves.

Random musings:

My

Tyco

(TYC)

prediction from

last week is working, as a big squeeze is occurring off

Barron's

. ... The doom-and-gloomers who told me that we would re-experience the crash of '87 and blasted me for being opportunistic get off unscathed again since I will not reprint your emails to me. (I got a dozen from people calling me a Pollyanna, but I have been called worse -- even by people associated with

TheStreet.com

.) ... From the paper-beats-rock department: stock splits on the Net are more powerful than the rocks that

Compaq

(CPQ)

threw at the market.

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 the stocks mentioned, although holdings 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 letters@thestreet.com.