“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.
I’d buy now if I could get past the fact that I coulda bought at $7 (split-adjusted).
Pardon me, but did someone just mention the iPhone in the same breath as a Zune?
BWAHHHHHHH!
Yes, he mentioned the Zune, but only to call it a joke!
Breakout? Apple needs to breakout new (i.e. better and less expensive) cimema displays this summer, a suite of software that crushes Microsoft Office in 2007, and 45-nm chips in all Mac in 2008. I know, I’m just nostalgic for the days when Apple made Macs. But I don’t have a TV and I have no interest in an iPhone that cannot also copy, edit, and print documents wirelessly.
Sorry,
Cramer is a complete dolt….
@maczealot,
With your kind of business insight and acumen, I think you should apply for Steve’s job. Obviously you know ‘way more than he and the engineers at Apple do!
We have breakout on our iPods. Does that count?
Bozo
S.
Just waiting for my transfer to clear so I can buy more.
Keep the price down a couple more days, analysts!!!
Enderle, I haven’t heard anything idiotic from you in a while, get your head out of Bill Gates’s lap and write something! I need a buying opportunity!
-c
MW: ‘sent’ (but not received)
Randian:
I know what I want. Besides, I’m sure that Apple is quite aware than improving their lines of computer hardware and software is essential and that includes Macs, LCD displays, and software. I’m sure that the iPhone released in 2008 will be substantially improved and less expensive than the one in 2007. Would you consider this insightful and profound or, maybe, just an example of how good business operate?
Your feeble attempt at sarcasm is lost on your acute ignorance of how businesses make money (i.e. designing and marketing ever increasing better and/or less expensive products). It doesn’t take someone with a MBA to understand that product improvement and lower prices are a draw for the consumer. Does this make sense to you or not?
@rory,
I totally agree.
Cramer is giving value to Apple because of the “fashion” factor. To him, the reason someone buys a Mac is the same reason why someone pays more for a pair of jeans because of the label.
That comparison applies perhaps to a Sony Vaio: an (arguable) better looking PC, but still a PC, with a crappy OS, and who knows what electronics inside.
He does not understand that the main reason Mac lovers love Macs is the OS (and I keep saying that). The main differenciator is Mac OS X. Sure, Apple design is the best, and the computers are by far more beautiful than any PC. But that is a plus. Perhaps an important plus, but just a plus.
I would say Mr. Cramer should keep with his stock picking wizardry and shut up about technology, a topic it’s evident he does not know a think about.
rory,
And how many millions have you made? I’ve never heard of the Rory Money show.
Dvorack has his own show, Endele has his own own website, and BBC owns a whole newspaper. Does that make Dvorack, Enderle, and BBC smarter than you, too? That’s what I thought.
I’d buy now too! If I had any money.
As I don’t, I get to watch it climb and feel sick inside.
AS I write this Apple stock is down 50 cents….
Cramer…?…Eh, the guy is bag of blustery hot hair. He is a stock TV show entertainer, not a stock picking genius.
50 cents?
Wow. Wally, you’d better just stay out of the market if you think 50 cents means anything to AAPL. You don’t have the stomach for it. >.<
-c
Put a red nose, an orange wig and big, floppy shoes on Jim Cramer and he would be a bad Circus act.
He is not someone I would bet my financial future on.
ChrissyOne – I believe Wally´s point was that Cramer´s pontificating was not felt in the market; i.e., despite his wishing so, Cramer holds no weight in effecting the stock markets.
I bought at $96….sobbbb
@ bruce you spelled Dvorak wrong but i think I like your spelling better. It really reflects the response people have to him..
Dvor-ACK. ACK.
I drank too much I think im going to DvorACK.
I have food poisoning, I think Im going to DvorACK
Yeah. Cool.
@ Mr. Bob S.
The point I was making is that AAPL down 50 cents could very well be the market reacting POSITIVELY to Cramer. That’s how AAPL works. Great news, big earnings, high sales figures, aaaaand, the stock tanks. For a few weeks at least. This keeps happening because every time Apple does good, Wall Street thinks that the party must finally be over, so they get out. I mean, how long could this stock go up?
How long indeed. =)
-c
Cramer doesn’t understand one very important fact: Macintosh (and, except for iPod, Apple) addresses a niche market and is always going to enjoy a market share south of double digits.
This stock is worth what it sells for in a free market. That’s all there is to it.
Chrissy1 – “…could very well be the market reacting POSITIVELY to Cramer. That’s how AAPL works. “
Oh, LOL,LOL, LOL. The stock goes down so that is a positive. Cramer said positvie things about Apple, the stock goes down and this a plus or any effect at all?
LOL. So Cramer should continually say bad things about Apple and the stock will go up??? LOL.
I believe the point Wally W was making is Cramer is worthless in making a stock move. But then you should take that negative comment about Cramer from Wally as a positive for Cramer, right?
Chrissy1, remind me never to listen to any of your stock advice.
Serendipity rules!
Wrong again, you are wrong again. Can I tattoo the word “niche” on your forehead? If Apple does climb above double digits, the halo effect of that will take it into the twentys and not the teens, pal. Prepare yourself to eat your words, as Apple growth, stockside or not, is tremendous. The tides are just at the crest of beginning to turn. This is not coming from a hopeful fan, but from the growth numbers and the potential thereof.
Up 60 percent since last summer. It’s frothy. What the hell is he talking about.
TO MDN: BLOCK THIS ASSHOLES.
MDN: I’m Back. Block this if you can. It’s called anonymous surfing. Trying to block my IP? Good luck bozos.
maczealot:
Your feeble attempt to refute my suggestion belies your keen grasp of the obvious. Of course EVERY business wants to produce better products, produce them quicker, produce them more efficiently, and produce them at a lower cost. WHO DOESN”T UNDERSTAND THAT? But if you’re so damned sensitive to what Apple needs to do in the coming months, why didn’t you include some of the following?
1. Release Leopard immediately.
2. Upgrade/redesign the Mac Pro and MacBook Pro lines immediately.
3. Add gaming capabilities to the iTV console immediately.
4. Release a MacTablet/miniMacBook immediately.
5. Announce the widescreen iPod (wiPod?) immediately.
6. Declare a dividend on all AAPL shares to diffuse the current stock options scandal.
7. Etc., etc., etc., etc., etc., etc.
It doesn’t take a financial or marketing genius to come up with a dozen more “improvements” Apple could make in the coming months to increase your loyalty and support, so why catalog a list of YOUR demands in the above post? Verbal exhibitionism, perhaps?
Unlike the morons who run Microsoft, Steve Jobs is not a joker and Apple will never release a “joke” product as long as Steve is in charge.
The real joke is that anyone would listen to someone stupid enough to call the iPhone a “joke.”
Randian:
Since you seem so keenly attuned to Apple’s stategies why don’t you predict when Apple will release all the above products. This would be extremely useful for all us Apple fans. Better yet, define your own business stategy and let’s all see how it compares with Apple’s. You know, Apple might even consider hiring a Wall Street wizard like you.
Give me a fucking break!
Profound disappointment?
After only 1 month?
Where do they scrape up these clowns?
Well Randian, it appears you started the arguement by attacking maczealot’s comment (which was certainly not offensive) and in the end he turned the tables on you by attacking your “one-upsmanship” styled comment with exactly the same type of insult you originally fired off at him. How ironic, and actually how useless of an arguement to get engaged in. Why not just let folks express themselves here, and if they’re not attacking anyone, then have the courtesy to let them be. If you must retort to anyone’s comment, why not just make your point without being a smart ass, and inviting an ever-increasing level of personal attacks and ridiculous posturing? Give it up, guys. You’re both really smart, so just shake hands and get back on board the train.
And by the way, who says that Steve Jobs can’t use some suggestions, even if they have already considered them? Nothing like a little feedback and pulse monitoring to stay in touch with the real world, unlike Mr. Gates/Ballmer and Co.
MDN magic word: “enough” – self-explanatory.
Jim Cramer is NO DUMMY!
The only caveat- some believe that stock movements based on his recommendations (prime time MSNBC daily show) are for hedging purposes.
I report. You decide. Fair and Balanced. And Always Right (TM).
http://en.wikipedia.org/wiki/Jim_Cramer
I’m in Australia. Where on the web can I go to buy Apple stock? Been wanting a slice of this action for years.
Most of us as a group don’t listen to any of these analists anyway. I’ve had stock sense Apple was “beleaguered” and I’m not complaining how apple is doing things. Apple has never done things “immediately”, All these things people say Apple has to do, THEY DON’T, and you know it. Nobody pushed for the first imac, nobody pushed for the ipod, ” the monitors have to have this, the powermac needs that, prices are way to high. Apple has done a great job following none of our advice, now watch them grow. If your in, stay in, if your afraid don’t get it. The iphone, maybe apple won’t sell 10 million by 2008 but they will sell one because i’m buying it. The iphone will allow me to do some things that no other cell phone maker cared to do… real web browsing and connect and sync right to my MAC. Yes it maynot be G3 and a bit costly but Ive been let down by Moto, LG and others (don’t ask me to use windows mobile). The iphone is for me and I’m buying it. You want to complain about Apple? Go right on ahead its a free country, but Apple has been around for a long time and most of its customers, new and old are pretty happy with what they have, I know I am.
Sam –
e-mail some Australian on-line brokers and ask if they deal in foreign stocks, then ask if their on-line systems are Mac-compatible. That’s how I bought Apple stock from the UK. It was very easy.
@ maczealot
” I know, I’m just nostalgic for the days when Apple made Macs. “
Let’s see –
Aug 2006 – got new Mac Pros
Sept 2006 – new iMacs
Oct 2006 – new MacBook Pros
Nov 2006 – new MacBooks
Nov 2006 – new xServes
hmmmm, 2 months since the last hardware update. The oldest model in the current lineup is 6 month old……..
How long do you think the life cycle of a particular model should be? Some people are never happy.