“Could this be the long-awaited breakout of Apple (AAPL)? This stock has been, with the possible exception of Google, the most profound disappointment of 2007,” Jim Cramer writes for RealMoney.com.
“The froth of the iPhone coupled with a belief that the new device must be a failure because of its price point — even as my teenage daughters tell me otherwise — has kept a huge lid on the story,” Cramer writes. “I think that lid could be sliding off.”
Cramer writes, “Here’s why: We are able, now, to see the power of Steve Jobs. He owns a whole industry with this iTunes, a whole industry. Who can imagine what will happen when we get to iTV [Apple TV]?!?”
“Jobs is the most important man in media; therefore, Apple is the most important company in media — again, with the possible exception of Google,” Cramer writes. “To me that’s worth more of a premium than Apple currently sells for.”
Cramer writes, “Indeed, the great mystery of Apple is how darned cheap it is vs. its growth rate. Apple sells at 26 times next year’s earnings estimate, with a 20%-plus growth rate. That makes no sense and reflects a belief that iPhone’s a joke like Microsoft’s Zune. It isn’t.”
Full article here.