erniem

Why Apple Is Worth $80

AAPL is one more churn and burn hedge fund favorite. That alone would stop me from buying a stock that pays no dividend and has a PE approaching 40. Buy all you want boys, just don't cry when the market for yuppie toys goes belly up.

Can Apple Be a $300 Stock?

Apple is and always has been another speculative stock. A super high P/E combined with no dividends and a dependence on the sale of toys to the prosperous and semi prosperous make it the Starbucks of gadgetry. As long as there is money around to play with, Apple will survive. Just don't be surprised when the latest toy, such as the tablet, crashes through the floor like a brick and the stock drops $150 in a month.

What an Apple Tablet Has to Be

Apple has made major mistakes before and this appears to be one, if they are producing a tablet. As with many companies, their preoccupation is with massive income producing sales of new gadgets, not improving the old ones UNLESS it will produce income. Nothing wrong with that, but they just ran into the original limitation of gadgetry, human ergonomics. A laptop is something you carry around and use, an iphone is something you stick in your pocket. The tablet is, by definition, something you carry around. Why carry around a 10 by 10 limited function tablet, when you can carry around a small laptop? The usual yuppie/techno geaks will buy this and call it "indispensable", but the public won't. They are broke, and they sure don't need one more toy to carry around.

Now when they find a way to stick a 10 by 10 interface in a pocket, they will sell millions of them. But not yet. I'd avoid getting all gushy about apple stock, which pays no dividend and has 30/1 PE. Why in world would anyone buy it? Only because it's another popular churn stock, like Google. Another way the big boys take money from the small boys.

False Data Clobbers the Markets

Let's see.. Rumors about Apple have cut $30 from the share value. That translates to: I bought this perennial loser at the highest it has ever been and am waiting for a miracle.

Plenty of oil: Sure is. Getting it out of the ground is the problem. Ever try to suck oil out of sandstone closed pockets?

China is not a risk. China is building freeways for 200 million cars. If one third that number fills them......... That will add another SIX MILLION barrels a day of consumption, which everyone admits is not currently possible.

O, Inflation. The dollar is in tatters. The current free money policies have destroyed it.

Jim Cramer's Stop Trading! 1/9/08: Berkshire Stay Away

notice apple is down twenty points in a little over one week. nice call jim, got any more?

Jim Cramer's Stop Trading! 1/9/08: Berkshire Stay Away

Typical Cramer hogwash. Apple is on another one of its tears. When the novelty wears off and people look at earnings instead of sales, it will begin the downward spiral again. Google is the most hyped over bought stock out there.