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.
You knew the move in Apple (AAPL) would happen just when no one was paying attention, 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.
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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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.
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
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
At 12:30-12:45....We got the call to start manipulating and buying...So we did.
Have a nice Holiday..
Run for the hills instead!
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.
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."
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
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