Mad Money’s Cramer: hammering Apple stock is much like ‘shooting Apples in a barrel’

“CNBC’s ‘Mad Money’ host and analyst Jim Cramer on Tuesday evening spoke about the tech stock trade and specifically targeted Apple. According to Cramer, tech stocks are defenseless against things that ‘hammer’ their value — they have no dividends, buybacks or takeover prospects. ‘Apple probably has the best prospects of any tech stock out there,’ Cramer explained,” MacNN reports.

MacNN reports, “Metaphorically, Cramer said that hammering Apple stock is much like ‘shooting Apples in a barrel.’ He believes that because Apple offers no dividends, no guidance or any buyback — no defenses. ‘Any short seller can rumor down any stock without a buyback,’ he asserted; it’s so ‘pathetically easy’ that all a person has to do is lift up a phone and tell their friends and brokers causing a chain reaction.”

MacNN reports, “‘Understand, all of these stocks [I think] are valuable,’ stated Cramer, ‘I picked Apple because it has the best prospects and it’s still getting creamed.'”

Full article with screen cap of Cramer shooting apples in a barrel here.
Missed it the first time? Correct the mistake. The elevator is coming down to pick up the stragglers who couldn’t or wouldn’t see it before. But, they see it now. Have patience while we get down to their floor and they finally climb aboard.

Related article:
Cramer’s Mad Money advice: keep Apple Computer, dump Microsoft shares – July 05, 2006
Cramer: ‘I have never seen a systematic, multiweek bear raid like I have on Apple Computer’ – March 27, 2006

30 Comments

  1. I said the same thing back at $70. Now my $25k in AAPL profit this year has turned into a huge loss. Guess that’s hat I get for being a hopeful Skippy!

    Wait for positive momentum before calling the bottom or you could wind up grabbing that knife that still has a ways to fall.

  2. The gamble is wether people are gonna switch in numbers. It’s a gamble, any way you slice it. The fact is, Apple has pigeonholed itself for elitists, and people are so tied to that emotionally, they’ll NEVER buy an Apple, EVER. It’s the same with politics. The big question is how many people are rational enough to break free from that so they can live happier lives (because Apple computers make your life easier).

  3. MDN take: The elevator is coming down to pick up the stragglers who couldn’t or wouldn’t see it before. But, they see it now. Have patience while we get down to their floor and they finally climb aboard.

    Now that it’s on the short sellers’ radar, the ride will probably be more like a roller coaster. Gone are the days of AAPL growing on achievement. Any bit of bad news (actual, speculative, or just plain WRONG–and there is plenty of that type) and the stock takes another dive. Then, no matter what good news there is, only a slight increase may result.

    Kinda reminds me of gas prices in reverse.

  4. Apple in particular is a short sellers dream. Take it from someone in the business.

    Companies like Apple that offer zero guidence, no incentive to invest other than market apprication (i.e. no dividend or buyback) and have very loyal fan bases are perfect for the short sell. I don’t even own an Apple Mac computer and I spend a good deal of time reading these sites just to time the market. Further, since I’m a tech trader and speak with folks on a regular basis, I know way more about what’s coming down the pipeline than MDN or most of the people who post here. Its pretty funny to read how dead wrong many of you are about Apple’s future products and short to intermediate term performance.

  5. Time for a little “Good Ol’Boy Stocks 101”:

    For a long term invester, the only stock price that matters is what the price is when you sell it. You only loose money on a stock if you sell it below what you paid for it. As long as you believe in the long term stability of the company and can wait on the rebound, your always in the money. Not to mention if you do lose money on a stock, there is always the tax write off.

  6. G-spank is so very mistaken –

    If you think the 90%+ PC market that is dominated by Windows is doing it because Apple Macs are the “Elite” machines than you are not living in reality.

    The fact is that people are selling on news that [fill in the blank this week with “Microsoft”] will unseat the iPod. Reality is that no one has seen what Apple has in store for Decemeber 25th shoppers and the iPod economy was neither built over night, nor will be undone in a fiscal quarter.

    Further, with modest gains in market share of just 3-5%, Apple will double it’s Mac penetration – and consumers with their home PCs _are_ switching.

  7. MacDailyNews Take: “Missed it the first time? Correct the mistake. “

    Remember MDN was rah-rah-rahing Apple at $85 saying it was going over $100-$110. To all that took MDN´s advice then and lost nearly 50% of their money…well, thanks, MDN.

  8. Jim’s right would NEVER divulge what he “knows” because there would be a chance he might be wrong. Instead, he works in the same way these analysts work: all talk without having to prove anything. People listen and believe because they sound important or knowledgeable, yet in actuality know very little. Of course, he would also offer an excuse: “My sources would dry up” or”If I divulged, then it would affect my stock holdings.” Either way, he can claim anything he wants and suckers believe him without proof.

    Let the reader beware!

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.