“After hedge fund manager David Einhorn defended his proposal on CNBC that Apple offer current shareholders perpetual preferred stock to deliver value and put their cash to work,” Paul Toscano reports for CNBC. “Jim Cramer’s immediate reaction was to ask, ‘What the heck was he talking about?'”
“‘This is a great intellectual exercise and a novel idea, but I have a lot of novel ideas that would actually move the stock up because it would increase the growth rate,’ Cramer said,” Toscano reports.
“He suggested that his ‘novel’ ideas to spur growth for Apple included a major acquisition, such as Twitter or Netflix, given their large cash position,” Toscano reports. “‘I want growth, I’m sorry, I’m a traditional investor,’ said Cramer. ‘I have a suggestion for him: You can always sell the stock. If you don’t like what they’re doing, you can sell it.'”
Read more in the full article here.
[Thanks to MacDailyNews Readers “Fred Mertz” and “David E.” for the heads up.]
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twitter is a fad. It’s worth something and nothing – a MySpace waiting to happen. Why would anyone invest ?
“twitter is a fad.”
——————-
Um. No.
Twitter is the CB radio of the new century. It will slowly die out when people get enough of it.
NO. It serves a critical aspect of internet communication, and as such, if not Twitter, then some evolution of it in the future will exist as long as smart phones as well as the internet does.
Apparently, you don’t understand what twitter is.
Perhaps you can explain what ‘need’ that Twitter fills? Why do we need to tell the world what we had for breakfast or other personal trivia?
“twitter is a fad”
Only Twitter??
Ha!
Maybe Twitter, But why would they buy Netflix? Netflix is only useful if it’s media access deals are permanent. As soon as Apple owns Netflix, the deals will begin to be affected mostly in less favorable fashion. But Apple should consider buying Duck Duck Go search engine.
Twitter isn’t selling and Apple can be a better Netflix than Netflix.
Apple is already the dominant digital video downloader–buying Netflix would be silly. Netflix is trying to move out of DVDs as fast as possible.
Agree, not to mention. How much money are these growth companies making? Heck, why doesnt he suggest buying Amazon. In 3300 years of earnings, Apple will get their money back. Ahhhh
Good points David. I would like to see Apple do something constructive with some of that cash.
I don’t get it.
Want more growth? why? bigger, faster than everyone…
what is sensible?
Jim Cramer is as crooked as a country mile. He admitted manipulating stock when he was a hedge fund manager. Jon Stewart called him on it, and it was sweet to watch Cramer shut up for a change. If you can handle the sleaze, look up his old interviews on Youtube, where he brags about his manipulation prowess. He pumps and dumps stock for gain, AAPL is no exception. His disclosures are incomplete, only referring to his charitable trust holdings. Despicable.
I agree. I watched him squirm through that interview. And it seems like he’s been up to the same old s*** ever since.
Cramer – another Wall St. whore.
Oh my.
STUPID.
Apple can certainly be better than Netflix with all those data centers coming on-line and all those credit card accounts Apple is holding. Heck, Netflix even has to depend upon Amazon’s servers and the company is supposedly competing against Amazon. How crippling is that? If Apple ever had any intentions of buying Netflix it would have bought it months ago before Netflix reached these current ridiculous share price levels.
I would like to see Apple grab a search engine as use it to make sideline revenue. I tried Duck Duck Go recently, but I don’t see anything that unusual about it that would draw users to it. It’s just like Bing. Bing is nice, but it still doesn’t have indexed what Google has. I’d just like to see Google shareholders sweat a bit if it starts to lose more ad revenue. No way Google is truly worth $300 a share more than Apple based on profits.
Einhorn isn’t going to sell the rest his Apple holdings because he’s already in too deep. His fund would probably take a huge loss. I think hedge funds have to keep at least one foot on solid ground while mucking about with vapor-based stocks like Netflix and Amazon.
“I would like to see Apple grab a search engine as use it to make sideline revenue.”
——————–
They have, it’s called Siri.
It’s market cap over shares outstanding that determine the price.
Also, duckduckgo is way better than bing.
Somebody has a big mouth and does not know as much as he sounds like he knows.
As one of those, I think Apple should buy Clearwire and build out the national network.
Clearwire, to put it simply, sucks. Their approach to customer service is diametrically the opposite of Apple’s.
Let Microsoft buy them. They’re neighbors in the Seattle area anyhow.
Cramer, Einhorn, Wall Street, analysts, etc.
The pot of fools just keeps growing.
If you want to pay ALLOT of money to make VERY LITTLE money they should do that ye.
Cramer should buy a six pack of socks from Walmart and stick ’em in his pie hole. He and Ballmer should do a traveling Bozo show, screaming and flapping around like two meth addicted clowns.
Rant over.
“Cramer should buy a six pack of socks from Walmart and stick ‘em in his pie hole…”
lol, great.
Utter waste of money, Apple can build both of them from the ground up in 2 years at 200 million dollars.
Cramer needs to learn more about iTunes before he gets overwhelmed with himself and his “novel” ideas. He wants Apple to purchase Netflix. iTunes is a wholly owned subsidiary of Apple. iTunes generates over $11 billion in annual sales. Which is considerably more than Netflix produces. iTunes rents and sells movies. I know. That’s where I rent mine. Cramer needs to get a program and keep up. Thanks. You can return to your regular programming.
This is why financial pundits shouldn’t be running companies. Cramer has no idea what it costs to deal with the management distraction of acquiring a company that doesn’t fit into your core business.
-jcr
Jim sure is loud.
I know a few people who live under the assumption that greater volume equals greater knowledge.
Did he just throw darts at a tech company labeled dart board or wtf?
zero intelligent basis for spending a lot of money.
look you use a “discount” card at the grocery store the store knows how much toilet paper you buy and can extrapolate from that how many times you use the throne. Facebook,twitter,myspace, push the vanity publishing thing to the masses. people are not getting jobs because of what is on their facebook page. Apple would never buy into this data mining narcissistic obsession. it is doing too well selling devices for us to use to make fools of ourselves. if apple wanted to make money by selling banner ads our desktops would be no different from windows with pop ups half ware and banners galore as you try to actually get stuff done . in spite of Cramers desire for growth for growths sake apple i think will wisely stay with whats working for them
“people are not getting jobs because of what is on their facebook page.”
I have warned my college age son, and some other older teens I know about this trend. People use FB as a sounding board, boasting and/or bitching about every personal thing to the world and it’s biting some of them in the ass. Facebook acts as a billboard of who you are to others, including employers. We were down to a few finalists to hire and we looked up all their profiles on Facebook. One did not get the job because of his anger and his rants of negative attitude toward women. This position had a female managers. On the other hand, we probably did him a favor not hiring him, he wouldn’t have been happy, but just sayin’…
When you start doing the crap Crookmer suggests, managing your company to please dickweed analysts, you’re on the road to oblivion. Those that can do: those that can’t chirp from the sidelines.
No they shouldn’t.
Netflix is so yesterday, blows chunks. Twitter is for idiots. Mostly celebrity idiots and the brain dead who follow them.
More proof that Jim Cramer doesn’t know anything about business he just knows about businesses driven by stock price. He thinks businesses are there only to make money. Apple has never been a business there only to make money. He should invest elsewhere and stop pretending that he knows what’s best for Apple. He’s never known what was best for Apple and he doesn’t know what’s best for Apple today. Apple plays in the Bbst in the history of the world sphere. Jim Cramer plays in the I have an opinion I can sell sphere. How could he possibly understand Apple and it’s strategic imperative? Cramer is just wrong for Apple.