“If ever there was a stock that confounded investors, it’s Apple. With earnings beating estimates but revenue falling slightly short, Jim Cramer reveals what every investor must know,” Lee Brodie reports for CNBC. “The results and the subsequent price action [down $53.79 (10.46%) to $460.22] seem to confirm what Cramer has suspected for quite some time. ‘Without Steve Jobs, Apple is just another stock, it’s not magical anymore,’ said Cramer. ‘But that’s okay,’ he added. ‘Just because it isn’t magical doesn’t mean it’s automatically a loser, especially considering how cheap the stock has become after this shellacking.'”
Brodie reports, “However that’s not to say Cramer thinks the Apple stock is a buy – he doesn’t. He simply said, ‘It’s time to accept the fact that Apple’s a decent stock the way IBM is or Johnson & Johnson is.’ No more and no less. ‘One thing’s for certain,’ Cramer added. ‘”Neither you nor anyone else wants to hear that Apple is fine, that it’s inexpensive even after this quarter. That it has huge flexibility with nearly $40 billion in cash – and that things will work out fine. This stock is way too emotional and even though that’s exactly how I feel, the coliseum wants red meat.'”
Brodie reports, “All told, there are plenty of reasons to sell. But – the stock is relatively cheap and that’s a good reason to buy. As a result Cramer added that perhaps the best thing an investor can do is just forget about Apple, all together. ‘It’s become the equivalent of an eclipse that you can’t stop looking at,’ he said. ‘Before long your retina’s burned out and you can’t see anything that’s actually worth seeing.'”
Read more, including Cramer’s reasons why the selling pressure may endure, in the full article here.
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