“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.
SEE ALSO:
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.]