“Apple beat Cramer’s ‘wild high’ estimate of $6 by as much as 43 cents, yet the stock is now trading higher than where it was before Jobs announced his leave of absence,” Drew Sandholm reports for CNBC.
“Selling at 14 times earnings, Cramer called Apple’s stock ‘dirt cheap.’ He thinks it should be higher, especially given its ‘incredible’ earnings results. Yet, some investors don’t think the company deserves its $300 billion market cap and worry about how it will do without Jobs at the helm. Cramer, however, remains bullish on AAPL,” Sandholm reports. “‘Apple is bigger than one man, even if that one man is part Thomas Alva Edison when it comes to inventing, part Henry Ford when it comes to manufacturing and part Sam Walton when it comes to building a retail empire,’ Cramer said.’Jobs has built a deep bench and even without him, nothing can stand in the way of this incredible growth company.'”
Sandholm reports, “Apple is like a rain forest, Cramer said, because everything grows there. Its competitors, on the other hand, are like the desolate Gobi desert. Not much growth to speak of, he said. Given Cramer thinks Apple could earn $23 a share this year, his [new] price target of $400 [up from $325] is relatively conservative. ‘With or without Steve Jobs, Apple is taking over the world and that’s why I’m raising my price target for Apple to $400,’ Cramer said. ‘Hallelujah. Never seen anything like it.'”
Read more in the full article here.
MacDailyNews Take: Here’s hoping and praying that it’s with Steve Jobs.
[Thanks to MacDailyNews Reader “Joe Architect” for the heads up.]