Cramer: I am being abject and adamant, sell some Apple ahead of earnings

“After Apple’s (AAPL ) earnings come out on Wednesday, people can buy the stock, but for now they should consider selling some of their position, Jim Cramer said on TheStreet.com TV’s Wall St. Confidential Web video Monday,” TheStreet.com reports.

“‘We have now had this first-class ramp into earnings. I don’t like ramps into earnings,’ [Cramer said],” TheStreet.com reports.

TheStreet.com reports, “Cramer said he believes the call is not going to be about the iPhone, but about the company’s earnings, and he doesn’t believe there is anything special in Apple’s earnings. ‘The next day [after the earnings] it will get hit and then you can pull the trigger,’ he said of Apple.”

Cramer said, “‘What I say to people who are unwilling to take something off is, ‘Look, you better not mind a sell-back to $135. You better be able to deal with that because I don’t want you in my face telling me, ‘Thanks a lot, why didn’t you tell me to sell some Apple?’ … I am being abject and adamant: Sell some Apple,'” TheStreet.com reports.

Full article here.

In related news, Katie Marsal reports for AppleInsider, “After surging for the past several weeks, shares of iPhone maker Apple Inc. could experience some short-term volatility around the company’s fiscal third quarter earnings report this Wednesday, warns one Wall Street analyst.”

“‘We believe buy-side investors have more or less figured over the past 18 months that Apple sell-side estimates tend to be overzealous and sometimes outright irrational,’ American Technology Research analyst Shaw Wu wrote in note to clients Monday,” Marsal reports. “‘Regardless, we advise investors to take advantage should Apple shares pull back on short-term concerns.'”

“Wu reiterated his Buy rating on Apple shares with a $165 price target,” Marsal reports.

Full article here.

43 Comments

  1. I’m not a big fan of Cramer, especially regarding Apple stock, but he does have a good point.

    If you’re a short term investor or a stock trader (as opposed to someone who makes long term investments and doesn’t micro manage their portfolio), you could potentially profit from some volatility post earnings call.

    Main problem is it’s risky and could blow up in your face. Apple’s stock is going to continue to climb, and it is not easy to predict when, where, and how it will dip.

  2. Looking at the Ibbotson chart from 1925 – 2006, here’s what I came up with:
    invest for 1 year: 30% of the time you lost money.
    invest between 5-10 years: 10% of the time you lost money.
    invest 15 + years: 100% you gained money. You did not lose any money. You are in the positive.

    Anaylsis: consecutive blocks of years vice cherry-picking the years.

    It’s time in the market, not timing the market. Although some would say that they could. But, I doubt it.

  3. You can surely time AAPL.
    Been doing it for four years now, and it’s like clockwork.
    Shall I post the items I’ve bought doing it?

    Anyway, timing the “market” as a whole is yes, no doable.

  4. A drop to 135 would not surprise me one bit, but unless you’ve only owned the stock for a couple of weeks it isn’t really that big a deal. A nine dollar drop is barely a blip to me, percentage wise, but such volatility is VERY common for AAPL, and if you can’t handle it I suggest you sell all your shares and get out for good.

    -c

    MW: ‘run’ (up)

  5. “If you’re a short term investor or a stock trader (as opposed to someone who makes long term investments and doesn’t micro manage their portfolio)”

    you typed the end wrong, that should end “if you’re a short term investor you are the kind of moron who makes the stock market look like an irrational heap of mess. try putting your money behind a good company and staying with it. if you want to gamble go to vegas.

    MW: “free” as in TANSTAAFL. get over it.

  6. By all means do, and incur a txa consequence that could be as high as 35% (federal), then pray AAPL drops enough to make the transaction worthwhile. Cramer is a churn and burn hypster.

    I have made several hundred thousand this year ignoring his recommendations.

  7. After watching and buying Apple stock for several years now, believe me… sell now and buy back after the earnings announcement.
    It’s always the same.. the herd builds up anticipation and then sells before earnings (when they peak) then buy afterwards (when they dip). Don’t worry, it’ll still hit $200!

  8. @ Gregg Thurman

    Wise move. I think what we’re really seeing here is a last gasp effort to create a buying opportunity before earnings. It happened this morning with the Big Scary Phone Hacker rumor, but, like all Apple security issues, wise people give it a day or two while the real story comes out (or goes into hiding) rather than panicking.
    Remember: Don’t Panic.

    -c

    MW: ‘cars’ (are not the dominant life form on your world)

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