“Reports are saying that as soon as next week the iPad, Apple’s touch-screen tablet computer, will be available to train store managers on its use,” Brennan reports. “Also, the company’s ad campaign will roll out two weeks from now. But the public won’t get its hands on the product until maybe April, leaving plenty of time for more hype to build. AAPL has ramped up before similar releases, and Cramer is guessing it’ll happen again. ‘You need to be in ahead of that,’ he said.”
Brennan reports, “Cramer said AAPL is still cheap. He subtracted the $43 a share in cash on the company’s balance sheet, figured in the $13.50 a share that analysts think Apple can earn and came up with a 13 multiple for this stock, excluding the cash. That “seems wrong to me,” Cramer said, citing Apple’s growing momentum in the personal-computer space, its market share among MP3 players, the devotion of iPhone users and the money coming in from iTunes. Cramer urged viewers to buy AAPL now, before the share price takes off.”
Full article here.
MacDailyNews Take: Shares of Apple Inc. (AAPL) are currently up $7.79 (3.70%) to trade at an all-time high of 218.50.
[Thanks to MacDailyNews Reader “Gomer Pyle” for the heads up.]
Help, somebody. Please explain in layman’s terms what exactly “seems wrong” to Mr. Cramer?
Sometimes he gets it right.
I made a nice profit off my AAPL, now I want to gamble with that money. I see the stock going up – barring a split – and up, and up. But you have to sell eventually. It will be a while before AAPL settles into a groove where it is, again, a bargain. Unlike the computers, the stock has but one added value – it keeps making you (slowly) richer. But you have to HAVE money to MAKE money on it.
Other stocks have more reasonable entry points. Of course, other stocks also go down as well as up. Except, of course, when I want to buy them at a discount. ;^)
JoeMac,
By “seems wrong,” Cramer is saying that Apple’s share price is too low based on 13 P/E.
MDN, why do you still quote this lunatic?
JoeMac, He meant “under-valued”, or “under-priced”. He means the stock ought to cost more than $220 per share right now.
When Cramer says to buy…it’s time to get out.
I’m in and enjoying the ride. But, not to be a naysayer or anything, if iPad sales, after settling in following the launch, don’t exceed all the predictions – look out. I’ll have the ‘sell’ button app open on my iPad at all times and ready to tap.
smac
you are exactly right.
I do see apple going up long term. But if cramer says buy now, I get worried.
smac, deepdish et al.,
Cramer said “buy AAPL now” yesterday evening. AAPL is up nearly $8 per share currently. Regardless of what you think about Cramer, there’s no disputing that he was right. Big time.
Right on smac,
Those people want you to buy, until it reaches $225, then they’ll all sell and cash crazy money and the shares will get back to $200 next week, and you’ll feel robbed.
Today is not the time to buy, early this week was, at $205, or last week at $195.
If he’s so smart to give that kind of advice, he should have told us a couple of days ago when it was still $205 !!!
What’s the point of buying on an all time high ???
My advice would be: Sell today, buy back at $200 when iPad gets on the market (buy on news, sell on rumor)
Journo, you’re not getting it.
Even a broken clock is right twice a day.
@iYann – you’re right on. This is the classic Cramer pump-n-dump. Set your iCal for the “You gotta get out now” rumor that will cause the shorts to go batshit.
If you’re in it for the short term, bend over. Long term, just another blip on the way to nice profits.
Thanks, Fred & DL.
I hope he’s right, but I think Apple’s gonna do what Apple’s gonna do, regardless of what he says, positive or negative. He doesn’t have that much influence, does he?
Of course, there’s short-term stuff and long-term stuff. LT, Cramer, the doofus, has a price target on Apple of $300.
Based on earnings, plus cash, plus growth rate, this is still a very cheap stock. Investors have never fully grasped the company’s nature, never deduced the steady fountain of game-changing ideas, and somehow do not trust past and present success to continue. They still think this is an eccentric boutique operation. By the time it fully dawns on the World what Apple is, it will be a $500 stock or more.
I agree that the iPad is not really in the stock yet (They are clueless about the many markets that will be affected by the iPad) What Cramer has yet to factor in and is clueless about is the BILLION DOLLAR SERVER FARM that is ready and should be on line when the iPad really starts shipping.
You would think someone would bring him and others up to speed. Why do they think Apple built that server farm? Idiots! Do they think that servers are grown on a farm?
I love Cramer
Wow, thanks, Jim… so you can sell Apple stock and profit off of it, and continue your stock market manipulation all over again? Why is this man not in jail? Because the mainstream news never “prosecuted” him like they should have. Only The Daily Show went after him, and then CNBC (and the other channels) made sure that they didn’t talk about it.
The last stock tip Cramer gave regarding Apple stock was after Apple had a product upgrade… iPhone or whatever it was, he said to hold off for the first two or three days because the stock was going to go down and then he gave his reasons why… Sadly, Apple stock on those three days went up, up and up! And never got near the low buying price one could have purchased had they bought in early trading that first day. So much for advice from Cramer.
The big pre-iPad run up has begun. But it helped today, that the general market was up. So, let Cramer and the other manipulators move the price up this time.
if you are an aapl investor and don’t love cramer you must be nuts. This guy has caused some of the most important breakouts last year, and what we had yesterday was thanks to him. The market was setup for a rally after the jobsreport, he knew this and aapl needed to breakout above 215. The afterhours where 1% up after his comment he took it to 213, and Steve J. geniously made the ipad anouncement yesterday morning. Thats why we had the breakout. Manipulation ofcourse but who cares if it takes aapl up ?????