Cramer: Apple stock is an investment, not a trade

“Apple proved Wall Street analysts wrong when it released earnings results that showed its quarterly profits had nearly doubled, while its revenue easily topped expectations, Jim Cramer said Wednesday on CNBC’s ‘Mad Money,'” Drew Sandholm reports for CNBC.

“Thanks to Apple’s blowout earnings, its stock surged almost 9 percent to finish at $610 a share. Apple is nearly 6 percent away from its all-time high of $644 a share. The stock sold off 11 percent going into the release, though, due to a barrage of “awful and unhelpful” commentary from the Wall Street analyst community, Cramer said,” Sandholm reports. “‘Wall Street analysts don’t exactly have a sterling track record, but this, this was perhaps the biggest screw-up we’ve seen with a high profile stock in ages,’ he complained.”

MacDailyNews Take: Yeah, right. It was a “screw up.” A planned “screw up.” Talking down AAPL in order to hop aboard for the ride up is the ruse everyone with at least half a brain knows. As we’ve written frequently, as recently as January:

AAPL is like a buoy. Quick, it’s back on the surface! You there, analyst, and you, too, swim down and tug on the chain! Drag it under.. lower, lower… good! Now, quick, everybody jump on, and we’ll take a ride back up to the top again!

Rinse, lather, repeat.

Sandholm reports, “To make his point, Cramer first noted that he views Apple as an investment, not a trade. Apple has an inexpensive stock that sells at a discount to many other technology stocks, Cramer said. He thinks the Cupertino, Calif.-based company has great future growth prospects, too, even despite the recent passing of Apple founder Steve Jobs… ‘I say stop listening to all of these bogus trading calls and focus on investing in Apple. That’s the only way to make money in the most important stock of our time.'”

Read more in the full article here.

MacDailyNews Take: At the most basic level, it’s extremely simple: Pump, then dump. Foment, then buy. Rinse, lather, repeat as the SEC sleeps.

Related articles:
Jim Cramer: Apple the greatest growth stock of our lives – April 10, 2012
Jim Cramer: ‘Nothing wrong with Apple; patience will be rewarded.’ – April 29, 2011
Cramer: Apple’s stock is ‘dirt cheap – nothing can stand in way of this incredible growth company’ – January 19, 2011
Cramer: Apple dip is a ‘buying opportunity’ – July 13, 2010

16 Comments

  1. The analysts are in collusion. Yeah, go after Apple for making 30% on ebooks but let this deliberate stock manipulation go unchecked and uninvestigated by SEC and
    DOJ. Eyes only open when the blinders go on!! Simply disgusting

    1. I could not agree anymore with what you said. there is clear and deliberate stock manipulation going on here. The AnalCyst need to be called into the spot light. They are making these claims to cause the stock to dip then surge. Thats illegal and SEC who are a bunch clueless bags of shit don’t do a thing. IMHO The SEC is more responsible for the Bernie Madoff scandal than Bernie himself. You cannot continue to manipulate the market without consequences. Right now the timid invested is buying and selling and making their brokers tons of money on the trades. The investors would do themselves and the rest of us a big favor if they educated themselves on this market and look at Apple history and future growth potential and hold on. Sell when it makes sense but not get pushed into a sale because some AnalCyst says Apple is about to implode. A lesser company would not be able to weather that type of BS. They could go out of business all on a lie or a panic caused by one of these un-accountable jackasses.

      I would love to see a timeline done by ours friends here at MDN showing the predications vs actual Apple success in a timeline. I think it might get the ball rolling and maybe that might also get some heads rolling in the end.

      To all you AnalCyst out there.. Your day will come and you will get what is coming. From the SEC or some angry investors who actually listened to the slanted, tainted crap you spit out. Friends don’t let friends listen AnalCysts.

    2. Who is manipulating it? One analyst? One hedge fund? One mutual fund? Do they all have secret meetings where they plan their attacks? Secret handshake? C’mon, this shit goes on every 3 months with AAPL so why is it such a big story? Learn to profit from it. It happens to most companies but you don’t follow other companies and their stock performance. It’s not just AAPL. It’s NOT
      just AAPL! If you’re certain that it’s collusion I’m guessing that you’re smart enough to know how to invest with such negativity out there. Right? If not why not? Think about what you said.

      1. Never said it did not happen with other stocks clearly I mentioned above that it did in the portion that talks about a lesser company not being able to weather the storm. As far as profiting from it I do. When it dips enough I might buy more. I also never listen to the talking heads or analyst because they are so often wrong and not just a little wrong but aiming in the other direction wrong. If you don’t think someone is gaming the system here then you need to examine their bs comments. As far as a secret handshake it’s not needed these assholes know each other by scent alone. My comment also called for a timeline to show exactly what I was talking about. To be able to show a trend. If they continue to provide such complete erroneous data and do it on purpose in order to profit then that’s clearly a violation.

    3. Analysts don’t get fired for missing out on upside. They get fired for missing a collapse. So they will always tend to lean towards the downside.

  2. Definitely a planned screw-up. But was it done by analysts since most of the analyst calls were positive in nature? Certainly positive enough NOT to drive the share price down as far as it did (15%?). I’m willing to consider there was a lot of profit-taking because the big boys knew there would be a good recovery in Apple shares after earnings. I’m just unhappy that the better Apple’s likely earning’s results, the more the stock is going to be played with by the big boys.

    I’d have no complaint if they returned the share price back closer to $644, but falling way short doesn’t seem fair. In a way, Apple shares got beat down despite the company doing very well over that period of time and long-term shareholders had to take the punch. I’m probably beating a dead horse about Apple shareholders being shafted by Wall Street and because nothing is going to change I might as well give it up.

    1. Yes it’s just business. Happens all the time. The market has nothing personal against the readers on this site. It’s just the stock market. Your observations are pretty good. Follow or invest in other companies and you’ll see that stocks get knocked around every day. I’m amazed at the number of reader’s comments that act as though it’s some big conspiracy against poor little AAPL. Look at PCLN for the last 2 weeks. Now there’s a stock that has gone up and down much worse than AAPL. Is it a conspiracy? Hardly. It’s just the stock market. Even fanboys should be able to understand that but they just keep on bitchin because they want to circle the wagons. Silly.

  3. Now the incredibly wrong Forrester Research is saying AAPL’s best days are behind it. This is their usual now that Steve’s dead bullshit! More FUD and market manipulation. MDN, please, when you post this bit of chicanery, show how accurate Forrester has been with your iCaled catalogue of their outrageous and almost always wrong claims. To me they are among the biggest offenders of this naysaying the day or so after AAPL proves them to be so incredibly stupid. I would love to see these a-holes forced to show their manipulation of the AAPL stock they hold.

  4. On April 10: “Jim Cramer: Apple the greatest growth stock of our lives.”

    I had opined that since Cramer is pumping AAPL, time was ripe to sell the stock and indeed, two weeks of “inexplicable” dumping action ensued. Peeps from Cramer then? Nada, until now. Draw your own conclusions.

  5. The Options:
    Cramer is either
    1) Schizophrenic, or
    2) A blatant liar for the sake of his own financial gain, or
    3) A berzerker trying to fry our little minds.

    I choose #2. Therefore, despite the fact that I agree with this particular Cramer proclamation, I have to request:
    Please Mr. Cramer. STFU already. 😛

  6. To riff on MDN’s fun buoy theme:

    Sell, FUD, the roller coaster falls, laugh.
    Buy, exalt, the roller coaster climbs, laugh.

    This is one of the more predictable games played by financial parasites who make a mockery of capitalism. It’s the usual Psychopathic Protocol:
    If you can’t win, CHEAT.

    I find this self-destructive protocol to increase in prevalence as people’s circumstances become more desperate. And oh look, we’re still suck in a worldwide economic depression. 😛

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