Why Oil and eBay Won't Mix

The trader says eBay and Sotheby's are an oil-and-water mix that investors should avoid.
Author:
Publish date:

We blew out of

eBay

(EBAY) - Get Report

this morning. Shame me once with my love for

AOL

(AOL)

-

Time Warner

(TWX)

. But you won't get me twice. eBay is a clean, good story.

Sotheby's

is a dirty, bad story. One has huge growth. Another has potentially phony growth. One is loved; the other is hated.

Doesn't matter. Old and new don't mix. We like eBay because it is going to take over the world. Not because it is going to take over the fine masterwork market. That has always been a low-growth play on hyperinflation.

We would get back in on a denial, but right now we have learned our lesson from when AOL and Time-Warner combined. Doesn't matter how great the combo is in theory, people don't like these oil-and-water mixes.

Random musings

: I wish the

Dow

had opened down. This up move just makes things too dicey.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long AOL. 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

jjcletters@thestreet.com.