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TheStreet.Com Crashes - Mike Swanson (10/27/06)

Submitted by Mike Swanson on Fri, 2006-10-27 08:44.

Shares of TheStreet.Com crashed yesterday as the stock failed to meet analyst projections. This is what happens with growth stocks when the growth stops and is an example of the momentum mania going on in the stock market today. Fund managers buy buy buy, because of a story and panic when they see a dark cloud.


It seems that the Mad Money effect peaked months ago. TheStreet.com's subscription revenue fell 1% sequentially in Q3 (excluding its acquisition of Weiss Ratings), versus growth of 10% in Q2 and 17% in Q1. Take a look at the number of times that Cramer's name has been typed in Google and how it has shrank over the past few months:


Cramer's popularity has peaked. We can call a top in Cramer. Now let's call a bottom in gold and energy.

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