I was channel surfing last Wednesday (May 6th) night and to my surprize, I
saw the CNBC Mad Money guy, Jim Cramer, outright recommending Cadence (CDNS)
as an investment:

(For those who don't know Jim Cramer, he's the stock analyst who Jon Steward
recently eviscerated on The Daily Show.)

Sure enough, for about 10 minutes on Thursday morning, CDNS shares jumped up
13% to past $6.20 a share (from $5.50) -- and then settled to ~$5.85 for the
next 3 trading days.

But something must have happened Monday night (May 11th) because today on
Tuesday morning CDNS dropped to $5.35 a share -- that's 15 cents below last
Wednesday's $5.50 price and before all this Cadence-Cramer stuff????!!!

         http://www.deepchip.com/downloads/cadence_whalen.mp3

Huh?

There were no massive changes on the NADAQ Composite during this time frame.

What happened?

I think it's great that an EDA stock finally got some coverage in the main
stream financial press, but why did this rally for CDNS suddenly stall?

What's the Cadence news that broke on Monday night that I can't find?

    - John Cooley
      DeepChip.com                               Holliston, MA

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From: Dan Nenni <dnenni=user domain=yahoo got calm>

Hi John,

A little more information on the Cramer-Cadence piece: Jim Cramer's a former
hedge fund manager, co-founder of TheStreet.com, and hosts CNBC's Mad Money.

 - Cramer: compared CDNS to TSMC and said CDNS COULD follow TSMC's 27% rise.

   CDNS did track TSMC the past 5 years, up until January 2008 so this is a
   fair face-value statement.

 - Cramer: Cadence doesn't have much competition in its business of making
           tools that help create smaller, faster microchips.

   One reason EDA is a flat $4B market is because of the rabid competition.
   Magma's pricing pants are still around their proverbial ankles.

 - Cramer: CDNS mngmt made big mistakes in 2008, but that's all in the past.

   Try 2004-2008, the Fister years.  That's 4 years of major mistakes, not
   just 1 bad year in 2008.  But the guy did have nice shoes!

 - Cramer: If you looked at the company's 2008 performance, the exhaustive
           list of what went wrong would have been enough to scare off
           even the most daring of stock speculators.  Investors would have
           seen tons of risk and virtually no chance for reward.

   Fair statement.

 - Cramer: EDA companies tend to renew contracts with old customers 99.9% of
           the time, so Cadence rarely has to worry about losing clients.

   According to Mentor and Synopsys they are picking off Cadence loyalists
   like Somali pirates stranded in life boats!  (Too soon for that?)


Clearly Jim does not know EDA.  The bottom line is Jim Cramer's a television
infotainer and he's prone to pump and dump groupies.

    - Dan Nenni


  Editor's Note: Dan has 23 years of doing sales for companies like Zycad,
  Avanti, Virage, Sagantec, Prolific, and Predictions Software.  - John