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In the Lightening Round of Wednesday night's Mad Money TV show, Jim Cramer made the following comment about VA Software Corp. (LNUX):

LNUX - Not a fan, not a fan! A lot of crying in that name when it came public in 1999. Here's the deal: I think that, if you want to be in that space, you need to be in the Red Hat (RHAT), which I kind of like.

But here's the problem. The "space" that LNUX plays in isn't Red Hat Inc.'s software and services market, though on paper that's VA Software's core business. In reality, LNUX is in the Internet content space. VA Software owns Slashdot and a bunch of other web properties, which is why its stock has done this:

On December 5th, I wrote about LNUX on the Internet Stock Blog. The article was called How Much Is Slashdot And Thus VA Linux Worth?. And since then, almost every article by a money manager, analyst or other contributor to Seeking Alpha's coverage of LNUX has focused on the company's Internet properties rather than its software business. And if you read LNUX's conference call transcripts, you'll see the positive data points about its Internet content businesses clearly.

Bottom line: LNUX is an Internet stock, not a software stock. Red Hat? Nothing to do with this stock. Perhaps that's why Jim Cramer's Lightening Round comment didn't have much impact on LNUX (5 day chart below):

Comments appreciated.

Source: Did Jim Cramer Get VA Software Wrong? (LNUX)