Apple Hype Priced In - Stop Trading! (6/9/08)

Recap of Jim Cramer’s comments on Stop Trading! Monday June 9.

Apple (AAPL), Research in Motion (RIMM): While Apple might be generating enthusiasm over the release of its new iPhone; most of the excitement is already priced in.“Apple’s been a great trade in a really bad market,” Cramer said. But he added, “we’ve had a very big run. Let’s be sensitive to that.” He recommended selling three-quarters of a position in the company by the end of Monday. Cramer would buy more Research in Motion if it falls below $120.

National City (NCC), Washington Mutual (WM): Cramer says housing woes are not over and he doesn’t see a bottom until 2009. In the meantime, banks like NCC and WM will continue to be hurt by falling bond ratings.

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Comments

[icanpress]

Again I say, don't waste efforts listening to cramer - I'd be broke if I did!

[ecklebob]

Hey Jim, do ya think we'll hit DOW 14,500 before the end of the year?

[phlash79]

I agree...apple has far to go...he is treating like a trade instead of an investment and I am sure a few months from now when apple is at all time highs due to the synergy of their business ventures...he will sheepishly vow not to repeat his mistake in the future...lol...I find it funny that all the Fast Money Guru's admitted to "holding" apple long term...and a few recommended buying more on the dips...

[tom1234]

sept reportings on the apple sales will knock the cover of the ball

[WillBuyOneNow]

Will the new business model mean appl declares all iPhone revenue for the quarter vs. the 1 24th in the old model. If so, that coupled with the lower price and 70 countries could mean a huge earnings boost. The earnings from last years 1 24th start hitting now as well.

Note, Citi and Lehman have raised estimates this morning!

[Tom B]

Cramer clearly wants to add AAPL. End off story.

[firefox2]

Cramer, prides himself in being controversial rather than right, and in this world of MEDIOCRE analysts, controversy tends to get a higher rating.

AAPL is a terrific investment, only that investors have become a rare breed. Its all about that "glowing carrot" called instant gratification.

AAPL is techno-democratic and revolutionary in its approach, its products are elitist in the preliminary stage and then roll over to the consumer mainstream, two strikes in one. AAPL is a winner.

[charanischiu]

Apple 3G iPhone with advance technology as well as pricing suit just about everybody even students.

Steve Jobs concern mostly on the company products instead of just trading company stock.

Apple will see huge iPhone market from Mainland China.

[User 169377]

In the last 30 years I would have a hard time naming a company as popular as Apple. So many Apple fans and on Wall Street, the translation of that is sell, if not go short. Contrary to the sore losers out there, Cramer knows this and I believe his Apple sell call is right on the money.

To give Cramer more credit (I know he isn't always right) he was right on with WaMu. He has been saying sell for months and if you followed him and shorted WaMu you would be sitting in some nice hefty profits.

[Tom B]

"In the last 30 years I would have a hard time naming a company as popular as Apple."

A bit hyperbolic. Apple's market share was LOW single digits through the 1990's. Apple migrated to UNIX; fixed their supply chain; introduced USEFUL, pleasant retail stores; migrated 21st century development tools (NeXTSTEP) to OSX; revolutionized the music industry; revolutionized the movie industry; and is currently revolutionizing the phone industry. They did all this the hard way-- with blood sweat and tears. What has MSFT accomplished since XP? Certainly NONE of these things. Certainly, ".net" has some cult-appeal in the dev community, but it's simply warmed-over Java. Silverlight is superfluous. Vista is a train wreck and NOT UNIX. XBox catches fire and loses money most quarters. And no retail stores. No competitive phone or music hardware, either.

[User 163362]

My take on why AAPL is a buy now and on dips:

20smoney.com/2008/06/1.../

[dig]

near term AAPL will be volatile due to the larger market, short term traders, and coverage like cramer's ... but APPL will very quickly build a base and continue to climb, they have a number catalysts in place now for massive growth. don't bother with cramer, do your own research. he's not always right about these things - like his thoughts on bear stearns ;-)

[rmo]

I have witness Jim Cramer being wrong a lot in his positions in stocks. What I resent is his lack of integrity in the process of doing so. Yesterday, he was disparately maintaining his counter intuitive call to sell-off all but twenty-five percent of ones position after the announcement of Apple's iPhone. For all those would-be-defenders of Cramer, watch the stock climb despite his call and let me know when this little man concedes he was wrong. I'm very comfortable with the notion he won't because he's done this many times over and never admits it or apologizes for it. Yes, in a very strategic move he admits a few missteps regarding a handful of small plays with a throwaway excuse. But this is Apple trading on the NASDAQ, not a stock no ones ever heard of. He's a gimmick. In short, a hack without integrity costing people a lot of money. But don't get mad at me for pointing it out, get back to me when this individual admits he was wrong. How many of his viewers watched his show and traded Apple the was he suggested. Was he right? Or was it another bad call causing you to miss a bigger investment. I'm thinking it's the latter.

[waf76]

Jim always talks on his show about his daughter and how the iphones and ipods are accessory items; that she wants more than 1 to match this outfit and that, etc. He also talks about how he made the mistake of taking profits on Apple before so him telling you to short the stock is his opportunity to buy. The new pricing model will take the stock to unprecedented levels. If you want to take profits now, then take them while I add on days where it dips.

[waf76]

One other thing, i remember like not even 2 weeks ago Jim said that Mastercard and Apple are momentum plays of a lifetime. While that may indicate a run up of sorts it doesnt take into consideration the overall strength of these companies performances and what is expected in the future even if you're predictions are on the conservative side. Jim is looking out for Jim. So you should be looking out for you. He can flip flop all day long. Listening to him means you'll always be late for the wedding and early for the funeral.

[Hardhead]

May 28th Cramer says: Here’s how to scale out of Apple when the new iPhone comes out. If you own 100 shares, sell 25 the day before the announcement, 25 the morning of the announcement and then 25 that afternoon. Hold on to the last 25 shares to see if the excitement sticks around in the stock.

CRAMER was Steve BALLMER's roommate - enough said!

HH

[Kelly Lieberman]

Anyone buy in yesterday at $178??? I did! My husband said "don't", and I did it anyway.. as usual. In the market, it is great to get advice and ask around, but at the end of a day, you have to be able to fall asleep.
I am sleeping soundly.

[hrant]

cramer is wrong on APPLE ! this is the start of the story of APPLE ,not the end or even the middle. let see when cramer will revise his take . soon , I bet .

[Robcal1]

What a complete idiot Cramer is, he's just like everyone else saying it's come up quite a bit recently. Here's what all of the negative Nancy's fail to state, "Apple is down YTD." Does anyone at all remember that Apple was at $202.96 at the start of January. Apple came back because it was grossly oversold just because the whole market was getting slammed. Actually, it still hasn't fully come back, and we've had two great quarters of earnings and more new products. Apple should be well over $200 per share right now. What say you MOW-RON CRAMER!!!!

[Takayama]

Cramer may be right. Apple is over-priced and over-hyped. 3G and GPS is not new. 4G and dual SIM-card is the next frontier. By the way, as a consumer, I hate Apple's practice of restricting the customer's choice by locking the phone's software and barring other service providers from selling the phone. This seems so unethical and against free market practice. Motorola and Nokia, please deliver us from unfair practice and mediocre products.

[TanToday]

>>>Motorola and Nokia, please deliver us from unfair practice and mediocre products. <<<

Uh, last year, about this time there WAS NO iPHONE....

So, tell me again how they are the "good guys" and your "white knights?"

Honestly, some people are BORN to be drama queens.