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Apple (AAPL +2%) roundup: 1) Jim Cramer states Apple is "becoming the J.C. Penney of tech,"...

Apple (AAPL +2%) roundup: 1) Jim Cramer states Apple is "becoming the J.C. Penney of tech," while suggesting sentiment has become too negative. 2) The state-owned Chinese press has become more positive on Apple following Tim Cook's apology letter. 3) The USPTO has reaffirmed the Oct. invalidation of Apple's "rubber-banding" patent, which was successfully asserted against Samsung. 4) Apple has hired much of the team behind the original Segway, including robotics expert John Morrell. No word on what project Morrell is working on. (Goldman)
Comments (49)
  • deercreekvols
    , contributor
    Comments (5294) | Send Message
     
    If Cramer is negative, then this is a "buy" signal.

     

    He is staying in line with Goldman Sachs downgrade. He wouldn't want to upset his friends by saying the opposite.
    2 Apr 2013, 11:27 AM Reply Like
  • citypound
    , contributor
    Comments (153) | Send Message
     
    But you notice he still owns it in his trust portfolio.
    2 Apr 2013, 11:49 AM Reply Like
  • deercreekvols
    , contributor
    Comments (5294) | Send Message
     
    Goldman Sachs holds millions of shares of Apple.
    They will not be selling. They will be buying.
    Cramer owns Apple shares. He will be buying.

     

    http://bit.ly/12cGsbx

     

    Beware what Jim Cramer says. Be aware of what he does.
    2 Apr 2013, 12:56 PM Reply Like
  • Remyngton
    , contributor
    Comments (354) | Send Message
     
    That GS analyst has been wrong for 3 years.
    He was bullish March 5 , and no longer as of today

     

    The stock has fallen $290 before he downgraded the stock ... you think he's good ???
    2 Apr 2013, 04:39 PM Reply Like
  • KenNagle
    , contributor
    Comments (288) | Send Message
     
    Cramer comparing Apple in anyway to JC Penny is just plain dumb.
    2 Apr 2013, 11:27 AM Reply Like
  • Skippy09
    , contributor
    Comments (1495) | Send Message
     
    It's the Ron Johnson connection popped into Cramer's head, that's all. "Just plain dumb" is very correct.

     

    I'll refer you back to dcv's last sentence above.
    5 Apr 2013, 09:38 PM Reply Like
  • Doyle3000
    , contributor
    Comments (1287) | Send Message
     
    Be greedy when others are fearful. Today's AAPL investors will do well over the long term. AAPL has this really odd thing about it where they actually make billions of dollars in pure GAAP profits.
    2 Apr 2013, 11:31 AM Reply Like
  • bobbobwhite
    , contributor
    Comments (1969) | Send Message
     
    No JC Penny of course, but certainly Apple under Cook is not the Apple we all came to love, and may never be again. Looks more like it every day under the weak Cook. He is the Peter Principle proven right once again.
    2 Apr 2013, 11:34 AM Reply Like
  • jswieter
    , contributor
    Comments (176) | Send Message
     
    Tim Cook's operational, supply chain and management talents at Apple made it the most successful and innovative company of all time. Something Steve Jobs acknowledged repeatedly. And the longstanding Apple board who have been part of Apples success before Cook and now after Jobs have given their approval of how Tim is running things. So what part of the Peter Principle are you referring to? Or, is it just your myopic and unfounded personal opinion? Just asking.
    2 Apr 2013, 12:11 PM Reply Like
  • Jack Staub
    , contributor
    Comments (86) | Send Message
     
    Steve Jobs battled cancer for many years, during which time he wasn't that involved in the day to day operations of Apple. But Tim Cook was there and it was he who built the free cash flow monster that is Apple.
    2 Apr 2013, 02:05 PM Reply Like
  • imac007
    , contributor
    Comments (468) | Send Message
     
    Last quarter Apple produced phones 24/7 at the rate of 6 per second. That rate lagged demand which did not catch up until mid-Feb. iPad mini supply also lagged demand. Tim Cook is the world's leading expert on supply chain management. Who do you think got them to the 6 phone per second output level. Earnings per share is the real key. Apple has never really grown by expanding margin. They have grown by developing more income streams. They have obtained and retained a loyal following. Retention is key. Business success tends to be based on two factors, being first to market and owning your technology. Even though Apple didn't invent the phone or even the smartphone, they created a new category with a touch screen graphic user interface smartphone. Apple is not primarily a hardware company, they are an experience company. Having to wait a couple weeks for a phone, will not deter their customer base, they want the experience. They married a touch screen phone with apps to the iPod, then added touch and apps to a new generation iPod Touch, reinventing themselves. They reinvented the tablet using those same features and created a new category. New revenue streams were added like iPad covers, external keyboards for their mobile devices, and audio/video connectivity to name a few. How many Garageband apps have they sold? A few dollars here and there from 10's of millions of users adds up. A special education push with iAuthor textbook incentives, capturing over 90% of the high school etextbook market. Niche market capture, with iPad 2 pricing creating wholesale moves into the school system, acclimating the next generation into Apple culture. What are they going to reinvent next? They have fingerprint sensor technology and indoor navigation capability. Add a payment capability and they might just reinvent the retail experience. The fingerprint sensor technology gives them all they need to compete in mobile security and it can be built into the back of the phone. Is it right to invest in the near term? About 2/3 of the holdings have been institutional investors. These are mutual funds, pension plans etc.. They are wanting growth and Apple stock has been stagnant. They have trimmed back holdings. Once the market pulls back from its current run and potential catalysts become near term we should see short term investors taking a position. This should push prices back up slightly. If it coincides with the next catalyst the push up should be sustained and the trend reversal will once again attract institutional buyers. More buyers equals higher prices. I would buy when the trend reverses. I have no present holding. I did buy last time it got to $421 and sold at $466. I think Apple should do a stock split. I think 3 digit stock prices scare a lot of the potential retail investors. Buyers of the stock are the key. Volume always precedes price.
    2 Apr 2013, 03:08 PM Reply Like
  • Remyngton
    , contributor
    Comments (354) | Send Message
     
    The margins are not there anymore , but the next Q should be better

     

    Negatively ,
    The EPS has been cut 14 times in the last 2 months by the street
    FQ 2012 gross margins were 48% , now they are 38% , back to 2011 levels
    FQ 2012 Net income as % revenue 28% , now 23%

     

    Positively , by the end of the December quarter, Apple has used just under $2 billion of the $10 billion authorized for share buybacks , and of course there's the cash fortress
    2 Apr 2013, 05:43 PM Reply Like
  • scott trader
    , contributor
    Comments (4678) | Send Message
     
    Cramer needs to get some sleep....a good race car driver knows he needs to turn before he comes to the corner not afterwards..
    2 Apr 2013, 11:43 AM Reply Like
  • CautiousOne85
    , contributor
    Comments (44) | Send Message
     
    Agree with deercreekvols above. There's no surer buy signal known to man than Jim Cramer calling a Sell.
    2 Apr 2013, 11:48 AM Reply Like
  • jswieter
    , contributor
    Comments (176) | Send Message
     
    Agree wholeheartedly.
    2 Apr 2013, 12:12 PM Reply Like
  • nguyenvanphuoc
    , contributor
    Comments (377) | Send Message
     
    On "Squawk on the Street," Cramer said he sees potential for Apple's next product to go down in history as an epic disappointment, on par with Apple's failed "Lisa" computer in the 1980s.
    "Whatever product that is coming out in September is a clear loser. We haven't seen it yet, but it is a loser," Cramer said.

     

    How does anybody take this guy seriously?
    2 Apr 2013, 11:51 AM Reply Like
  • rocback
    , contributor
    Comments (987) | Send Message
     
    and Apple is up $7 today
    2 Apr 2013, 11:56 AM Reply Like
  • jswieter
    , contributor
    Comments (176) | Send Message
     
    Cramer reminds me of a highly over-caffeinated bald headed pekingese with ADD that constantly barks at any thought that runs through his head. His brain is always on '"speaker phone". So you have to listen through the static just to get a handle on what not to do.
    2 Apr 2013, 12:16 PM Reply Like
  • AllesandroG
    , contributor
    Comments (17) | Send Message
     
    And Lisa begat the Macintosh.

     

    Had he been speaking figuratively, Cramer might have been referring to the unrealistic expectations of Apple-doubters, who are likely to react to anything Apple announces as not game-changingly good enough.
    2 Apr 2013, 12:45 PM Reply Like
  • madbcolumbus
    , contributor
    Comments (123) | Send Message
     
    he's being sarcastic.
    2 Apr 2013, 01:38 PM Reply Like
  • kkeate
    , contributor
    Comments (23) | Send Message
     
    possibly the most insightful, true post I have ever seen on SA..... Pekingese with ADD LMFAO
    2 Apr 2013, 02:33 PM Reply Like
  • Skippy09
    , contributor
    Comments (1495) | Send Message
     
    how does the man sleep nights?
    5 Apr 2013, 09:42 PM Reply Like
  • Skippy09
    , contributor
    Comments (1495) | Send Message
     
    Wow, jsweiter, someone finally nailed it!
    5 Apr 2013, 09:43 PM Reply Like
  • imac007
    , contributor
    Comments (468) | Send Message
     
    What September product? Latest buzz is for the next phone refreshin July/Aug.. Cutbacks in orders from suppliers usually mean that their supply has finally caught up with demand and that a newproduct is on the horizon with a different component set. Morefrequent releases make sense for Apple as each release creates asurge in demand. Long refresh cycles have led to lulls in demandas buyers wait for the next refresh. The implication of Cramer'scomment is that a new category of product will have a Sept. launch.iRadio looks like it will launch before then. The reinvention oftelevision idea looks more like next year as I think it may havemoved down on the ideas list. The iWatch, rumors have sure dieddown on that one, but the very idea has pushed down luxury watchstocks. Speculation of how margins would be healthy for such aniche product, hardly suggests failure. A wearable Siri device thatlets you keep your phone in your purse/pocket for many uses wouldjust extend the eco-system and have appeal. Investors seems tothink so if it is dragging down stocks like Movado. They sit in theprojected price category. A September launch could be aniPad/iPad mini refresh. Does anyone seriously see upgraded iPadsas potential flops? And, they are not a new category. A new biggerscreen or cheaper composite case iPhone? Some analysts suggestthey need into these markets. Bigger screen maybe, since they canretain margin. A cheaper phone, why move to the low/no marginend of the spectrum, where it is crowded. Based on last Qproduction of phones, a $100 reduction per phone price would costalmost $5 in profit. To earn that same profit from more sales wouldmean they would need to sell about 85M phones to get the sameprofit they got last Q from just under 50M, based on margin %. Andwould a $100 per phone reduction even be considered a "cheaper"phone? I think Cramer is very much more likely making a tongue incheek comment of all the negativity the investment press aregenerating and trying to point at its ludicrousness. If you listened tothe press, almost every release in recent times has been a colossalfailure. The iPad mini was a disappointment. However, it took untilmid-Feb for supply to catch up to demand. And, each cell phonerefresh has been a press disappointment, followed by record sales.Reminds me of the saying. "There is no such thing as bad press."
    6 Apr 2013, 11:03 AM Reply Like
  • imac007
    , contributor
    Comments (468) | Send Message
     
    This is a repost due to technical difficulties the original was difficult to read. I took some license in minor editing. Sorry about the original snafu.
    What September product? Latest buzz is for the next phone refresh in July/Aug.. Cutbacks in orders from suppliers usually mean that their supply has finally caught up with demand and that a new product is on the horizon with a different component set. More frequent releases make sense for Apple as each release creates a surge in demand. Long refresh cycles have led to lulls in demand as buyers wait for the next refresh. The implication of Cramer's comment is that a new category of product will have a Sept. launch. iRadio looks like it will launch before then. The reinvention of television idea looks more like next year as I think it may have moved down on the ideas list. The iWatch, rumors have sure died down on that one, but the very idea has pushed down luxury watch stocks. Speculation of how margins would be healthy for such a niche product, hardly suggests failure. A wearable Siri device that lets you keep your phone in your purse/pocket for many uses would just extend the eco-system and have appeal. Investors seems to think so if it is dragging down stocks like Movado. They sit in the projected price category. A September launch could be an iPad/iPad mini refresh. Does anyone seriously see upgraded iPads as potential flops? And, they are not a new category. A new bigger screen or cheaper composite case iPhone? Some analysts suggest they need into these markets. Bigger screen maybe, since they can retain margin. A cheaper phone, why move to the low/no margin end of the spectrum, where it is crowded. Based on last Q production of phones, a $100 reduction per phone price would cost almost $5B in profit. To earn that same profit from more sales of a cheaper phone would mean they would need to sell about 85M phones to get the same profit they got last Q from just under 50M, based on margin %. And, would a $100 per phone reduction even be considered a "cheaper"phone? Besides if producing 50M phones was a logistics challenge how do they think that 85M are possible. This isn't logic it's common sense. I think Cramer is very much more likely making a tongue in cheek comment, of all the negativity the investment press are generating and matching how ludicrous they are. If you listened to the press, almost every release in recent times has been a colossal failure. The iPad mini was a disappointment. However, it took until mid-Feb for supply to catch up to demand. And, each cell phone refresh has been a press disappointment, followed by record sales. Reminds me of the saying. "There is no such thing as bad press."
    6 Apr 2013, 12:33 PM Reply Like
  • scott trader
    , contributor
    Comments (4678) | Send Message
     
    he sure missed the call on Alcoa last year, the trusts largest holding........
    2 Apr 2013, 11:52 AM Reply Like
  • Jacob Steinberg
    , contributor
    Comments (814) | Send Message
     
    The last person that invested based on an advice of Jim Cramer is now a homeless guy. I've never seen him be correct about anything. He's a great contrary indicator.
    2 Apr 2013, 11:59 AM Reply Like
  • jps12345
    , contributor
    Comments (26) | Send Message
     
    Go to any AT&T store and ask which smartphone sells the best.
    2 Apr 2013, 12:08 PM Reply Like
  • aperture1
    , contributor
    Comments (186) | Send Message
     
    I am not so sure that Tim Cook will not be effective at Apple. I believe he will make his impact on the company in his own way.

     

    He has said several times that China will be Apple's largest market. I believe he I has the kind of personality to make a deal with the Chinese government that positions Apple to take the lions share of the smartphone market there through China Mobile. If Apple makes that happen, then we should see some good growth and Cook will be a hero.

     

    The traders, who are driving the stock price, have the patience of a two year old. Anything that doesn't happen within the quarter is too long for them.
    2 Apr 2013, 12:11 PM Reply Like
  • raincity
    , contributor
    Comments (217) | Send Message
     
    well said aperture.
    2 Apr 2013, 12:50 PM Reply Like
  • jswieter
    , contributor
    Comments (176) | Send Message
     
    We all know the big institutions and traders are driving the Apple share price to their own quarterly return objectives. Drive it up, take the profits. Drive it down and buy. Then drive it back up. Easy picken's for them as they know Apple does not gyrate up and down like other stocks. And they can conservatively sit and wait for announcements and realistic financial data to time the markets they are controlling over longer periods. Creating and riding the waves. They have the luxury to manipulate the markets that individual investors do not.
    2 Apr 2013, 01:40 PM Reply Like
  • sws1967
    , contributor
    Comments (102) | Send Message
     
    I heard this same "conspiracy" type of talk all over the chat rooms and blogs, but it doesn't add up. Where are the amazing returns from the "big institutions" that back up your claims?

     

    Funny how last fall all the talk was of the HFTs "running the stock down" until it only had a - gasp - P/E of 13.0! What a scam for such a great company! And then they missed earnings expectations two more times in a row and failed to release a phone that would steal Samsung share. Now, I hear very little conspiracy talk, but it's still around.

     

    I'd agree that AAPL stock behavior seems "odd" at times, but I'd pin that more on the high retail ownership, which is 40% (as compared to <20% for GOOG, for example). Who would you expect to trade more erratically, millions of retail traders or a few large institutions?

     

    Another thing I don't understand is why people would continue to trade this stock if they really believe that it's under some special "big institution" control? I wouldn't.
    2 Apr 2013, 05:37 PM Reply Like
  • pl39868
    , contributor
    Comments (2) | Send Message
     
    Just bear in mind that Cramer is not a market barometer, he's a market weather vane. Remember last October when he said "APPL is a must have part of your portfolio!"
    2 Apr 2013, 12:15 PM Reply Like
  • AllesandroG
    , contributor
    Comments (17) | Send Message
     
    I believe that will turn out to have been good advice.
    2 Apr 2013, 12:47 PM Reply Like
  • pabcanc
    , contributor
    Comments (222) | Send Message
     
    These guys must be playing with monopoly money
    2 Apr 2013, 12:27 PM Reply Like
  • scott trader
    , contributor
    Comments (4678) | Send Message
     
    the"sheeps" you mean?
    2 Apr 2013, 12:44 PM Reply Like
  • Eric Dee
    , contributor
    Comments (1011) | Send Message
     
    Like lambs to the slaughter!
    2 Apr 2013, 01:27 PM Reply Like
  • veenadayal
    , contributor
    Comment (1) | Send Message
     
    Although, Cramer said, "Whatever product that is coming out in September is a clear loser. We haven't seen it yet, but it is a loser," I think he meant to say that sentiment on Apple has become too negative. It seems that his own sentiment is on Apple is positive.
    2 Apr 2013, 01:48 PM Reply Like
  • Remyngton
    , contributor
    Comments (354) | Send Message
     
    Cramer - Fomenting stock behavior again ???
    2 Apr 2013, 02:41 PM Reply Like
  • kinnelon
    , contributor
    Comments (18) | Send Message
     
    Cramer is setting us up...buy now
    2 Apr 2013, 03:04 PM Reply Like
  • kinnelon
    , contributor
    Comments (18) | Send Message
     
    Avid business news junkie
    2 Apr 2013, 03:06 PM Reply Like
  • scott trader
    , contributor
    Comments (4678) | Send Message
     
    Icahn should host mad money......
    2 Apr 2013, 03:17 PM Reply Like
  • goldismoney
    , contributor
    Comments (15) | Send Message
     
    So Goldman has downgraded its Apple target from $650 to $575,
    however $575 is about $145 more than it is trading for right now.
    That's about a 33 to 35% hike from where it is right now.
    Puuuuuuuleeeeeeez, will everyone get real.
    2 Apr 2013, 03:56 PM Reply Like
  • adrian816
    , contributor
    Comments (177) | Send Message
     
    There doesn't seem to be anything driving Apples share price these days, it's just drifting sideways: http://bit.ly/13Po4uh

     

    Could be worse though if you own shares in Facebook, http://bit.ly/12dDBz1
    2 Apr 2013, 05:30 PM Reply Like
  • joeldcompton
    , contributor
    Comment (1) | Send Message
     
    @veenadayal. Right on. I, too, initially thought Cramer was negative on Apple. However, having listened to the entire discussion, it seems to me that Cramer is slightly poking fun of GS and is in favor of Apple's basic health. Cramer says (my paraphrase): whatever Apple says now is going to be interpreted as bad news. Just as whatever Exxon says will be interpreted as good news, "anti-Apple." Anyway, my two cents.
    2 Apr 2013, 05:35 PM Reply Like
  • sws1967
    , contributor
    Comments (102) | Send Message
     
    Very few people seem inclined to take the comment in context. Cramer was right - as usual - that sentiment is so bad on AAPL that nothing seems to lift the stock (this is what he said in context). Given that the stock is still sub-$450 I'd tend to agree with him that AAPL STOCK trades far too much on emotion and not how one would expect given the fundamentals.

     

    I realize AAPL's revenue is down 50% this year over last, but....oh wait, that's right, it's not down that much, it's only down....oh, it's not even down. But the stock is down nearly 40%, so how could that be? Because the market doesn't think AAPL can innovate anymore OR in other words: "Whatever product is coming out is a clear loser..." Get the connection?

     

    So, if Cramer is wrong, then the market DOES think AAPL will come out with a great innovation....and doesn't care? Someone will need to back this argument up with facts if they really believe it. The Cramer comment seems right inline with the facts we have - the market today is pricing in no innovation or growth for AAPL.

     

    Afterall, this is the same guy who said to buy GOOG over AAPL last October LOL....wow, imagine if you'd done that! Oh wait, again, that was one of the few correct calls on AAPL and there was plenty bashing when he said that - guess who was wrong? Not Cramer.
    2 Apr 2013, 05:36 PM Reply Like
  • BalancedView
    , contributor
    Comments (99) | Send Message
     
    He was dripping with sarcasm.
    2 Apr 2013, 05:43 PM Reply Like
  • wiesje
    , contributor
    Comments (2399) | Send Message
     
    the analysts reports from GS are to provide turn-over for their Investment and Brokerage desks , that's clients money - the analysts don't run the house-position at GS, the Traders do, that's the companies money.

     

    always take with a grain of salt analysts opinions whom belong to large Investment Banks or Trade Houses , they have many different hats on.

     

    the objective analysts are those who specialize in providing fundamental and technical reports and are less linked and depended to/from an Investment Bank or Trade House, but more to the traditional Banks.
    I rate Barclays or Citi's opinion as such higher than GS or JPM
    3 Apr 2013, 01:23 AM Reply Like
  • loveandpasion
    , contributor
    Comments (13) | Send Message
     
    Cramer says these things because he believes his word impacts how investors react and will sell sell sell.. so he can buy buy buy at lower prices, and when this product comes out in September whatever it is will be a BIG BIG BIG Winner... lol
    3 Apr 2013, 02:33 AM Reply Like
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