Jim Cramer: Apple trades like an auto parts company

“The averages bounced back on Wednesday, further proving to Jim Cramer that stocks can’t stay in the doghouse very long before they break out,” Abigail Stevenson reports for CNBC. “‘Today is the day when many stocks that had been languishing or puttering or just plain going down finally awoke from their slumber and regained their gusto as part of a broader move higher,’ the “Mad Money” host said.”

“One of those stocks was Apple, which took a hit when Credit Suisse recently reported a brutal forecast reduction based on weak supply chain orders by its team in Asia,” Stevenson reports. “At the time, Cramer rolled his eyes on the report, assuming it was yet another research firm attempting to discern weakness in Apple’s product sales by measuring components.”

“Cramer has seen this happen countless times during Apple’s historic run from generational lows in March 2009. For every new product, cellphone change or freshening, Cramer has heard a story of supply-chain weakness from ‘Asian teams,'” Stevenson reports. “Meanwhile, there were also reports from another Apple supplier in China that said the phone business is actually quite strong, disputing the “Asian team” channel checks from Credit Suisse. ‘For the record, I like hearing from Tim Cook’s Asia team a lot more than the Asia team of UBS or Credit Suisse or whatever other firm might convince you to trade Apple and not own it,’ Cramer said. In fact, Cramer thinks Apple is so darned cheap that it trades more like some metal-bending auto parts company.”

Read more in the full article here.

MacDailyNews Take: Cramer’s right. It is ridiculous.

Clients should take note of outfits like Credit Suisse that put out these end-of-the-year “actionable research” notes and then go find themselves a real broker.

UBS analyst’s latest ‘research’ note on Apple is just another ‘actionable’ note and should be totally ignored – November 16, 2015
Apple shares continue to get slammed on commission/bonus related ‘actionable research’ – November 10, 2015
Apple lower after Credit Suisse notes substantial supply-chain cuts – November 10, 2015

[Thanks to MacDailyNews Reader “David E.” for the heads up.]


  1. At best, it’s all just guess work no matter how many pretty tables and charts they display. At least economics is close to a science… 😉 All business schools should be closed and place in community colleges.

  2. Off topic but I’ve noticed (how can you miss it?) MDN auto-play ads – the most egregious & obnoxious of all ads – starts playing at the top of the page when an article comes up, and there’s nothing much I can do to stop it (except the usual browser scorched-earth ad stopping methods).

    Considering how MDN seems to want an Apple like quality user experience generally for himself this sure ain’t it for his readers. I am viewing this site on a Mac Pro stuck at Lion.

    I shake my head at wondering why MDN wants to play the “worst offender” card with ads? It’s exactly the kind of abhorrent web site practice most on this page find repugnant.

  3. MDN: Cramer’s right. It is ridiculous.

    It’s actually quite sick and shameful. It point directly at the rule of the lunatic fringe of analcysts in the current stock market age. They, like all the current Republican presidential candidates, think they can say any incredibly insane and psychopathic thing they like, and people are going to eat it up and raise them to be the new CAESAR!

    FSCK that.

    1. Saddling the nation with 10 trillion dollars in debt and nothing to show for, but a world going to hell, hordes of people on food stamps and not working, breaking our health care, and just being a failure at just about everything but community organizing. That is what is really RIDICULOUS!!!!!

      1. EmptyTank: Are you talking about the Republicans or the Democrats? I can’t tell.

        I DESPISE THEM BOTH. Both parties are “RIDICULOUS!!!!!”

        I constantly rail against the incentive destruction of socialism. And yet, how come only Bernie Sanders is speaking anything SANE this election year? Explain that to me, please. No one else is!

  4. How ominous for the Auto Industry, when Apple Inc. will not only be “trading like an auto parts company”, but will actually add an “auto” to its armoury, leaving not only the existing “auto parts companies” but also the “auto companies” in their wake!!

    Cramer is obviously reading the tea leaves these days.

  5. I don’t understand why people react to these supply chain reports. They have been doing this crap since I started investing in aapl. Supply chain checks have been as reliable as going to a fortune teller at a carnival.

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