“The market was down on Wednesday, but many stocks consolidated gains in a way that showed Jim Cramer that the companies underneath have some seriously strong pricing power,” Abigail Stevenson reports for CNBC.
“‘Sometimes, it just comes down to figuring out who has pricing power — who can raise prices and who can’t,’ the Mad Money host said,” Stevenson reports. “Pricing power refers to a company’s ability to raise prices without resistance. Cramer likes these stocks because they are the ones that bounce back quickly in a marketwide sell-off. And the weak ones in this area will fall behind quickly when the market comes back because their earnings-per-share numbers come into jeopardy.”
“One of the reasons Cramer always says to own Apple, not trade it is because Apple represents the ultimate strength of pricing power,” Stevenson reports. “‘I think that those who sold Apple on [the iPhone SE] announcement didn’t understand the signature positive of this new phone is that even though it is smaller, Apple can still command a high price for its wares,’ Cramer said… ‘Apple’s pricing power is legion.'”
Read more in the full article here.
MacDailyNews Take: Yes, it certainly is legion. Apple’s margins are the envy of several industries.
Apple fans…We are legion!
Apple is a mature company. And Cramer doesn’t understand pricing power.
Cramer said to hold and not trade when AAPL was up to above $130. It dropped in remained in the low 90’s for a while and his advice is certainly revealed to be foolish once again. Though timing the market is always a challenge, hold and not trade is certainly foolish for most investors regardless of where the stock is down the road. To each is own, but personally I would not hold on to any stock when it’s pullback gathers momentum.
Split adjusted, I paid $0.78/share for my Apple stock, How is holding in that situation a bad thing? The recent swings are a small blip on my graphs.
Buy and hold is a surefire way to lose your shirt.
If the strategy were true, your 401K would be worth much more than it is now.
Stock prices get manipulated by the second. There are many forces at work here.
Selling a stock when it is on a downward trend is logical. It’s not like you cant buy shares at a favorable price when needed.
Money is Religion
Money is Religion said:
“Buy and hold is a surefire way to lose your shirt. If the strategy were true, your 401K would be worth much more than it is now.”
And how is that true? I don’t know of a single financial management company that practices buy and hold. They all seem to buy high and sell low at least half the time…
I read Apple’s “pricing” is stronger than ever and had to lol.
Stop looking into the mirror!
I’d rather laugh than cry while looking into the mirror.
Have a nice day!
I don’t understand BB why are you LOLing when Apple’s margins are the best in the industry, its profits are the highest (for the iPhone, it is virtually is the only company that makes a profit with over 90+% of the total profits going to Apple and they have a net cash balance of about $140 Billion. it can negotiate for part prices better than anyone. So why are you LOLing?
I was looking at it from the consumers standpoint. Especially those of us outside the US.
An iPad Pro 9.7″ 256 LTE with keyboard back cover, Apple Pencil and AppleCare+ is $2000. The 12.9″ model is over $2000.
I don’t know how an Apple rep could ring this up with a straight face.
Finally, you verbalize that you don’t even understand the article or pricing power.