Apple is suddenly hot again

Retailers say the company could rule the holidays. The stock might end up being one of the best places to be going into the home stretch.

By Jim Cramer Nov 27, 2013 12:50PM

The Apple Inc. logo is displayed on the back of the new MacBook Pro David Paul Morris/Bloomberg via Getty ImagesYou knew the move in Apple (AAPL) would happen just when no one was paying attention,TheStreet.com logo didn't you?

 

Remember when Apple was on everyone's lips? All you heard about was how the company had lost its way and wasn't using its cash creatively or in a shareholder-friendly way. 


We hung on every tweet from Carl Icahn as he played cat and mouse with CEO Tim Cook. Apple went from being a failed-new-product story to being a failed-financial-engineering story in record time and Cook was letting down both the Apple enthusiasts and the financial engineers.


It got so bad out there for Apple that even when it reported a better-than-expected quarter, the analysts were critical and negative. Where's China? Who lost China, they asked. Why isn't Apple buying back even more stock? Why is it just sitting there? Why doesn't it do what Icahn wants?


Well, have you seen the stock now? Have you seen this creep up? And you know why that is?

Because Apple's really doing what Apple does best: innovating, creating new products. But this time they are more software oriented than hardware driven. And people love them. This stock started rallying the way it used to rally when the reviews came out about the most recent iteration of the operating system and they were not only laudatory, but out-and-out glowing. The new operating system leapfrogged over the thought-to-be-invincible Samsung and the new tablets bested anything anyone thought of just a year ago.


The result? We are beginning to hear from the companies that make corrugated boxes and the companies that ship holiday gifts and the retailers that sell hard goods that it looks like an Apple Christmas. Can it be as good as two years ago? I don't know, because that inspired the historic run to $702, still quite a ways from here. But the fact that the stock has percolated this high without all of that raising-price-target fanfare is really good news. The fact that it's not being done on catch-ups, upgrades and table pounding tells me the run has staying power.


Now, I know that Apple's still not giving me what I want, a credible social alternative to go with mobile. It didn't buy Twitter (TWTR) before it came public. It didn't buy Netflix (NFLX) before the run. It didn't buy Pandora (P) because it thought it could beat Pandora with iRadio. Maybe ultimately it can, but it hasn't yet. Nor has Apple kept up with the pace of innovation that Google (GOOG) is offering across the board. That company's on fire with inventions and ingenuity on a social, mobile and cloud platform and it isn't stopping any time soon.

 

But that doesn't mean that the company's sitting still. The acquisition this week of the Israeli- based Primesense is a giant step toward Apple creating something that can react to motion like the best part of the Xbox. We don't know how Apple can win the battle for the living room without the help of the cable companies, but maybe Apple can develop something that makes your cable box less of a hardship and your clicker less of an ice-age relic.


Apple's stock is, at last, now breakeven for the year. It is probably the cheapest stock in the Nasdaq 100 after you back out the cash. It offers a decent dividend that can go higher and it's got the biggest buyback on Earth. Oddly, it might end up being one of the best places to be going into the home stretch, a gaining momentum story with a low price to earnings multiple. And it's all being done without analyst support. Who knows what happens when they, inevitably, jump on the bandwagon in the last days of 2013.


Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AAPL.

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Jim Cramer's Action Alerts Plus: Check out this charitable trust portfolio and uncover the stocks Cramer thinks could be winners.





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43Comments
Nov 27, 2013 4:24PM
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Too much bloody money chasing too few equities -- A rotation out of precious metals and real estate into equities.  A full rotation within equity sectors will bookmark the market top.

How much lower will the acceptable capitalisation rate go? 3pc? 2pc?

One look at M2 money supply would convince anyone that this is bubble.  M2 is three times the level it was just a few years ago.

The Fed and Treasury are to blame.

Isn't digitising funds out of thin air great?

Very similar to a drunken Irishman borrowing from tomorrow's wages to swig today.

Nov 27, 2013 3:02PM
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sounds like ya'll sold your apple stock below $400.  Apple has been creeping up for awhile and

it looks like people ARE buying Apple products.

And just because Apple is doing better does not mean the whole system is going to break down.

  There are problems out there true but ya'll make it sound like its Apples fault

Nov 27, 2013 2:15PM
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and why didn't you recommend apple last week? because you had no idea it was going higher.

now that it has popped 20 points you are all over it.......such rigor

Nov 29, 2013 9:27PM
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I don't quite understand all the Cramer hate... I read his articles, but also watch his Mad Money and i've made quite a bit of money listening to him.  I don't jump into everything he likes and highlights, but I pick my spots.  BA, SLB, CELG, among many others.  I've also disagreed with his picks and also made money.  

Do your homework and research your investments.  He's very knowledgeable but of course can't get it right 100% of the time.  
Nov 27, 2013 6:13PM
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We were able to hang in there and had a decent close, definitely one for the good guys.....A break tomorrow and manipulators will be back here on Friday for half a day to try to do their thing....Oh well.....Happy Thanksgiving to all and never ever forget our brothers and sisters in arms that are out there putting their lives on the line every single day so we can enjoy tomorrow and our whole lives because like we all know Freedom isn't Free. May the Lord Bless them All.
Nov 29, 2013 2:25PM
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Like we said earlier, low volume and plenty of manipulators is a deadly combination....We couldn't make this up even if we tried...Not long before the close the called to accelerate came and you saw what happened...We are sure folks thought this would be an up day, up 75 points at 1030 hrs in the morning, short day...Sadly that wasn't the case; as long as we have cheating crooks hanging around trying to push these markets down, things like today will happen...Now, of course it wasn't a big drop, but that is not the point, the point is that scumbags will never stop cheating and stealing and will keep getting away with it because the worthless SEC doesn't have the desire to look into it...Oh well, we will see what they pull next week....Have a great weekend all.
Nov 27, 2013 3:23PM
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Cramer which way is the wind blowing today ? You are so flip flop on so many subjects. I swear you just try to create controversy
Nov 29, 2013 11:50AM
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I figured you'd be in the stores Aki..Fighting with all the old women, getting a negligee for Mr. Brucey.
Nov 27, 2013 3:39PM
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At 12:30-12:45....We got the call to start manipulating and buying...So we did.

Have a nice Holiday..

Nov 29, 2013 3:48PM
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I hate to admit this, but I took part in last nights Black Friday sales...... well my wife did anyway.  What's worse, she purchased an IPAD mini for our daughter.  I have written many times about my dislike of Apple but in this case, for the sale, it was a good buy.  It was a choice between a tablet or a new computer, and based on the uses we needed it for this was the cheaper and better way to go.  I wanted something easy to use so I didn't have to be in the room every time my daughter (6 years old) or wife used it, and this one is the most simplistic.  Well I feel bad about taking part in destroying the holidays, and for buying an Apple product, and for a child this young, I want to expose her to science and technology at a young age (also signed her up for an after school science program, doing experiments and things), that's where the jobs will be and if she assosiates fun with science maybe it will stick?  Anyways we dropped about 500 bucks into the American economy overall last night (your welcome) and my wife wasn't even pulled over at the border to pay duty making it a better deal.  Happy American Thanksgiving.
Nov 29, 2013 11:56AM
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Hope everyone had a great Thanksgiving Day...We are here only till 1300 hrs...Volume as you may imagine is very low but sadly manipulators are alive and kicking...We started up about 75 points or so until about 1040 hrs that scumbags called for the first wave of selling so now we are dropping fast....Only two hours to go, lets see if we can hold....More after the close.
Nov 27, 2013 5:01PM
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Ooooooh,,,another Cramer hot stock pick like last June's "buy Blackberry at 12." 

Run for the hills instead!
Nov 29, 2013 1:05PM
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Charity for Billionaires... EVERY fiat dollar printed for Quantitative Easing lifts ONLY the top earners in America while affording the 95% remaining with debt impossible to repay. WHAT do billionaires use that fake money on? They make BIG box retailers able to import CRAP from nations that do us nothing good, take our jobs, steal our money, starve free enterprise... and make PROFIT off it. The DUMB part is-- lowlife PEOPLE who text peck, skip out on taxes and thrive on deep discounters--- make themselves victims by doing so.
DID YOUR KID really need a new toy to break, mental distraction, brain-sucking tool? Wake up you IDIOTS... every penny the Dow is UP today indicates anti-Americanism. What goes around comes around and undoubtedly, as a Tsunami. You can't swim if you live dim and selfish. Get thinking... it's been a while, fools.

Nov 29, 2013 2:08PM
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NEWS:  US stocks fell, erasing gains in the final half hour of a shortened trading session, as declines in phone and financial shares offset a rally in online retailers on Black Friday ... WRONG: This was blatant manipulation ... where are you SEC?

Nov 28, 2013 10:03AM
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Rome...There are probably no "fair and honest" Markets on the Global scene...

Not really sure there has ever been ??

When the "money changers" got involved at the global level many Decades ago, fair play pretty much went out window in my opinion.


With the Technology standards and devices available today, investing, savings and the exchanging of assets has been changed forever....Along with old saying "that money talks, bullshidt walks."

Nov 27, 2013 3:22PM
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how do people continue to be duped by this hack
Nov 27, 2013 1:25PM
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"Poll finds unprecedented worry about job loss"

The article was pulled because ABS, DLH and Senor Cat trashed it, but the reality of it is that the working person doesn't trust this fake economy and the job blockaded person is obviously outside looking in. Those two groups ARE the economy so as long as it's about wages and stability, QE will remain a TOXIC influence until we collapse because of it. Kind of like throwing sand on a fire on a wooden boat. Too much sinks it, defeats the purpose and causes cataclysmic loss. Until scholars are banned and inheritors are jailed... we are on a runaway freight train heading down the sewer drain. I prefer we stop it in it's tracks give administrators the ax and restore competence so we get America standing tall again. Got a MBA degree? Go start your own enterprise and get off New World Order salary.  
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gee cramer get real

 

the stock market is over valued including Apple considering Bernanke is pouring $85 billion a month into assets.

 

Sort of like listening to Marie Antoinette say let them eat cake and thinking everything is just fine

 

The whole system is about to break down folks

Nov 27, 2013 1:25PM
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Blah, blah, blah!  So Apple's lovers are betting on a big Apple Christmas.
Nov 27, 2013 1:17PM
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NOT. We've got surveys, speculation, analysis... BUT not actual customers buying devices. Get a clue Mr. Ivy League Detached From America... the buying public is struggling with 1 ounce packets that keep the cost the same for the CPI so TIPS funds don't skyrocket. Apple is a losing prospect.
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