“Apple’s recent big-dollar decline [AAPL: $574.97 -25.95 (-4.32%)] is hardly a cause for concern, ‘Mad Money’ host Jim Cramer said Wednesday,” Bruno J. Navarro reports for CNBC. “‘Don’t let the big numbers fool you,’ Cramer said. ‘I find that if you divide everything by 10, things become a lot clearer. If Apple were a $60 stock, not a $600 one, and it fell $3, you wouldn’t freak out, particularly after what was, indeed, a serious disappointment.'”
“Apple, Cramer noted, is selling for less than 11 times next year’s earnings,” Navarro reports. “‘It’s among the cheapest stocks I follow, offering phenomenal growth for a price rather similar to many cyclical semiconductor names,’ he said.”
Navarro reports, “If it were a $57 stock, the question would be a no-brainer, Cramer said. ‘I reiterate that I believe Apple must be owned. You don’t rent it and you don’t trade it,” he added. “I think it will be well worth it as it has been for all the years and years that I’ve told you to hold on to the best manufacturer, the best retailer, and the best technology stock money can buy.'”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
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he sure is loud.
Name that stimulant addiction!
I want it!
Cramer is a shill, Apple is ascendant, Cramer pimps Apple. But.
http://thinkprogress.org/media/2009/03/19/184350/jim_cramer_crawls_back_into_the_ge_bubble/
+1
Except that Apple isn’t a $60 stock and probably won’t ever split. I’d just like to know where those investors that quickly dumped Apple stock are putting their money. I guess they must have found a better stock somewhere to invest in. It seems like the majority of stocks are getting hit pretty hard in this economy, so jumping from one stock to another isn’t such a great idea. Investors could just end up with bigger losses moving their money around hopefully trying to catch another stock on the way up. Even if Apple did miss its numbers, it’s still one of the best companies out there. Quickly selling it off only to have to buy it back later seems rather foolish.
Most of Apples volatility is from institutional investors. They all want to be the first out on bad news and the first in when it bottoms. The dividend and the buyback should make the pullbacks smaller and shorter.
Who cares if it is not a $60 stock. You seem to have missed the point, which is to look at the percentages and the multiples, which are totally separate from the $ value of the stock.
Gold, Silver, Grain futures might be among the places. I didn’t sell any this week, but the world economy is kind of wobbly right now and the drought in the Midwest/Plains is going to seriously impact food prices in the not too distant future.
I’m no Gold bug, but debt bomb currencies are not great places to park your wealth.
http://www.splatf.com/2012/07/apple-jun12earnings-charts/
The above page shows that all has not been rosy and beautiful in Cupertino. Global headwinds have affected Apple, too. But more disturbing to me is the lack of progress on product development. Forgive me, but Mac OS 10.7 and 10.8 are both disappointments. MacBook Pro Retina is a niche product without software to support the display’s native resolution. Nice, but not a money-maker. So Tim Cook had better roll out something ground-breaking, otherwise stagnation may easily set in — just like it has in Redmond.
Still waiting on an expandible tower slotted between the Mini and the Mac Pro. You know, a business-friendly desktop machine. If Apple won’t cosy up to business or server lower-cost consumer price points, then its growth will be limited. Just like BMW, Porsche, Mercedes, and such high-quality automakers. If Tim doesn’t get product development revved up again, Apple could very will become a “hold” stock.
@’Mike’ says:
Mac OS 10.7 and 10.8 are both disappointments.
• 10.7: Disappointment for sure. But beta testing of 10.7.5 beta has begun. There is hope here.
• 10.8: NOT a disappointment. I’ve been testing it for months and am impressed, including the Server version.
MacBook Pro Retina is a niche product without software to support the display’s native resolution.
• There ARE Retina native apps gradually being released. You can also force the display to use full resolution.
• This IS ‘progress on product development.’ This IS ‘ground-breaking’ tech. The ‘niche’ you refer to is called ‘The Bleeding Edge’. You can’t get any more ground-breaking! That’s how it works!
Still waiting on an expandible tower slotted between the Mini and the Mac Pro.
• Not enough market to bother. Just a dream. Apple will continue with the Mac Pro.
• The 2011 Minis are excellent. Mine is running OS X 10.8 Server brilliantly.
If Apple won’t cosy up to business or server lower-cost consumer price points, then its growth will be limited.
• The Mac Mini IS at the ‘lower-cost’ business and consumer price points. I’m using a new one as a server replacement. Works great.
• As for Apple cozying up to Enterprise businesses: That’s a long, sad, tortuous story where both sides of the equation fell down and acted irrationally. I don’t see much hope for improvement until Microsoft commits its final act of self-destruction. Ignorant, insecure and nuts as the situation clearly is, Windows rules the Enterprise. Occasionally Apple gives it another go and the Enterprise IT loons either reject it or don’t buy enough to justify the Apple investment. Apple’s growth remains elsewhere. For now, for worse or worst, there is no hope in this market apart from the iPad. 😯
Derek – Nice slice & dice on Mike.
Another disguised anti Apple sloth exposed.
Another neutered dog that will not reproduce.
Medieval theologian Thomas Aquinas – Sloth is “sluggishness of the mind which neglects to begin good… [it] is evil in its effect, if it so oppresses man as to draw him away entirely from good deeds.”
@ Mike,
Yes, they are in trouble, because all their competitors are releasing such innovative products they will destroy Apple (that is sarcasm, by the way).
While I actually agree with you to a very small extent that the last year has seemed underwhelming compared to the previous 5 or 6 years, I don’t think it is what it appears.
First, I think that people’s memory isn’t all that accurate in any case. No company, even Apple, can create a revolution every year, and Apple never has. There have always been periods between products that are just business as usual, executing oa selling the products.
iMac – 1998
OSX – 2001
Apple stores – 2001
iPod – 2001
iTunes – 2003
Intel Macs – 2006
iPhone – 2007
Apple TV – 2007
iOS app store – 2008
iPad – 2010
Also, I almost wonder if Apple delays products based on the macroeconomic outlook. Why release a new product into a crappy economy? Apple is maybe better off waiting to release something instead of launching into a tepid market, which would just give Google/Motorola/Samsung some time and breathing room to copy it before the economy picks back up.
FO troll- you have no idea what you are talking about.
Do you have some private line that NO ONE ELSE HAS about the new products Apple is planning on introducing this year? Didn’t think so…
By the way, APPL did NOT miss its own Estimates- they in fact exceeded them- this quarter. Just those of the clueless, lame-brained ANALysts who either over project or under project as they have done now for the past 20+ quarters.
@Mike
I think any stagnation you experience is in your brain.
Apparently you don’t care for Apple’s product line or future prospects.
If you don’t like Apple go invest in something else.
Pleas name a better tech investment.
Applei s fine. We are a short time away from new items. Some expected others interesting possibilities. The Chinese market is expanding.
So take your stagnation with you!
Last time I listened to this loud mouth he was pushing a stock that created software to prevent outside forces from invading Corp websites and others. I lost 30% since I bought it.
When is the last time he was right about anything.?
I would note he said the same about Sony some years back
See Sony today…stock price and financials.
If they are the best manufacturer why is the new Server app have more 1 star than 5 star ratings (deservedly so)? It’s obviously amateur hour over in the Cupertino Server developer office.
Apple needs to get serious and fix the server ‘app’. It sucks like a Dyson.