“Apple (AAPL) took a 63 point nosedive after management reported earnings. Cramer doesn’t think it was the declining gross margins or questions about market share that hurt the company the most, but the arrogance of management, which gave analysts the impression that the company doesn’t need to justify itself [via Jim Cramer’s Mad Money TV program on CNBC, Thursday January 24.],” Miriam Metzinger reports for Seeking Alpha.
“Cramer thinks that Apple is resting on its laurels because of its past greatness, and the once-growth company is now becoming more of a value stock; ‘Perhaps the guys at Apple don’t even care,'” Metzinger reports. “Cramer issued an open memo to Apple: Do something with your cash. Apple could be helped with a buyback, a dividend or an acquisition, but he doesn’t see much upside in the stock for the short term.”
Read more in the full article here.
“Apple currently has about $137 billion in cash on hand and Cramer thinks it’s outrageous the company has no plans to put that money to work. He suggested Apple’s management start an aggressive stock buyback program or offer a massive dividend boost. If management fails to tack such actions, though, Cramer fears things won’t be looking up for shareholders,” Sandholm reports. “If Apple’s corporate leaders don’t act soon, Cramer thinks shareholders will likely suffer more pain.”
Read more in the full article here.
The best time to invest in a company’s stock is NEVER when it is very popular. A few months ago, Apple was about $700 and Cramer was wild about it. He said it was the greatest stock ever. Now, with Apple bouncing around $450, it has become unpopular. Mr. Cramer is too emotional and he has become the worst bear. I consider him to be a good buy signal when he gets this silly.
Warren Buffett recommends (and practices) the art of buying stocks when they are down. I have watched him work since the 1960’s. He regularly sells at the highs, and he buys at the lows. His latest move was Bank of America at about 6. I think Apple has more cash on hand than most banks. Maybe this is really a financial stock.
And God help Google, Samsung, and Microsoft if Apple decides to compete on price instead of quality. Apple has the longest production runs. Therefore they have the lowest cost. It would be awful for other competitors. Meanwhile, Apple just finished the biggest revenue quarter in the company’s history, and it happened while they were battling shortages of parts. Can you think of any other company battling that issue. Think about it.
China is about 5 times the size of the United States. Tim Cook is likely making a brilliant move to make China into Apple’s biggest market. It could lead to 500% growth. I think I will buy more.
Let’s not worry about the business of the company, let’s worry about shareholder happiness. Let’s not worry about the business of the company, let’s worry about whether management offends analysts – obviously their hurt feelings rule the stock market. Let’s not worry about the way Apple has successfully run their business for the last 15 years, let’s worry about doing the things everyone else would. You know, the people that Apple passed years ago.
We’ve been hearing this fucking bullshit about their cash pile for so long. Analysts and greedy investors wanting a few dollars NOW have been yelling about this since Apple had $10 billion in cash (or equivalents). It’s not hurting their business, it’s hurting the feeling of analysts and greedy investors.
Kramer:
“Buy!” (last week);
“Sell!” (this week);
Stock manipulating Asshole (EVERY week).
*Cramer*
I think the Anal-ists are arrogant to think they can thrash Apple’s stock and have the nerve to ask for bigger dividend payouts. They are acting like a bunch of spoiled babies. Apple has always been a regular public traded company. Nothing has changed. Only the STUPIDITY OF THE ANAL-ISTS!
JIm Cramer is to Apple what Robert Hughes is to Salvador Dali…
Luckily, just like Steve Jobs did, Apple’s management appears to be ignoring the inane garbage spewed by Wallstreet and its players.
Never stop being “arrogant”. The moment you start listening to those people, you’re dead.
Apple is trading at under 6 times earnings minus cash right now. How long can it possibly stay that way? They can use FUD to drive down the stock but they will not be able to stop customers from buying the best products available. I think we will see some big things from Apple this year. Don’t bet against a juggernaut. Although a 10 for 1 split and an aggressive buyback might be a good move right now. It certainly cant hurt at this point.
Where Jim Cramer is wrong is that HE is like any other broker: he knows nothing about running the world’s most innovative, market-leading company. Amazon has made $5 billion ion profit in it entire 20 year history. Apple makes that in about 5 weeks!!! Cramer has been off my list for years. He’s a spec stock cowboy, selling his viewers on highly speculative stocks then apologizing later when the CEO gets busted (Chesapeake) or a market share of an old technology tanks. The only one arrogant in Jim’s article is Jim. Here’s something Jim and the rest on Wall Street need to learn: You people have ZERO idea what you are dealing with with AAPL. I hope Tim and the board de-list the stock and manage the trades themselves through iPad apps. Fruck Wall Street. They are shysters and I will do everything in my power to avoid them in the future. All my other investments I’m doing in Luxembourg where common sense, steady growth are king and cowboys are shown the TGV station.
Sectioning dividends out was the biggest mistake in this case, as far as the price it is simply the mass of lemmings herded by the manipulators of the stock market.
Jobs had balls for this, the current bean counter does not seem to have the creativity to match.
Cramer is simply a cheerleader for the lemmings.
Rumor: Apple buys Clearwire in order to use its cash building a nationwide network.
At around 610 Cramer said Apple was a great buy, traders were manipulating the stock and some analysts were incompetent. A couple of days ago he said it’s just like any other stock. Now today it’s arrogant management. You shouldn’t even quote the guy.
Why companies should not cater to shareholders:
http://www.nytimes.com/2013/01/18/business/how-dell-became-entangled-in-options.html?pagewanted=all&_r=1&