"I don't follow Ariba too closely largely because of its $20-plus billion market cap," says Drew Cupps, manager of the Strong Enterprise fund, which is long Commerce One. "I own Commerce One largely because of its $6 billion market cap. For anyone who has any valuation sensitivity, that's one of the attractions."

Some years later on 11 October 04 Commerce One had a market capitalization of $4 million, about 1/1500 of was deemed to be a sensitive valuation. An investment in Commerce One was a "buy high sell low" trade. A peer stock that is even more expensive, does not make another one in the same industry cheap. I guess in this case someone thought of himself as a value investor while being really a momentum trader.