Much has been made of John Malone being angry or upset with AT&T’s management; but I think that is hogwash, just a bunch of reporters trying to get a story going. I think Malone’s in there making some solid suggestions that will get traction with stockholders eventually. In the meantime, when the Germans are willing to pay $50 billion for some network nobody has ever heard of, what is AT&T worth? Go figure.
That brings us to the banks and the brokers. This group is hot, hot, hot. And it is never a false tell. One thing I do a lot of work on is group leadership. While there is always plenty of splash behind technology leadership, the bulk of securities out there trade off the financials, not off of Intel or Cisco. There are literally thousands of financially related stocks out there that really color the advance-decline line. When these stocks go up, they create a healthy hue that forces bears to capitulate. That’s what is happening now.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Ariba, AT&T, AT&T Wireless, Brocade, Exodus, IBM, Intel, Cisco and Nortel. 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.