Jim Cramer on Q3’s results: Fire all the Apple analysts (video)

Apple is the greatest products company in history, says Cramer, and It should be covered by the analysts that follow Proctor & Gamble, Pepsi and Colgate.

From Tuesday’s Mad Money:

Even more galling is that the stock I’ve urged you long time to own and not trade isn’t even valued like a regular tech company. It’s valued like some sort of sturdy cyclical industrial. I’m telling you this is poppycock.

My take: Preaching to the converted, but with spittle and passion. Video worth watching.

If it were valued properly, Apple could have a $300 price target from CNBC.

9 Comments

  1. Gregg_Thurman@me.com said:
    I agree with Cramer.

    Let’s start an online petition to fire WS’s AAPL analysts, starting with Tim Long, Toni Sacconaghi, Mark Moskowitz, Sheri Scribner, Ron Hall, Jeffrey Kvaal, Kulbinder Garcha and Aubhey Lamba for starters. Eliminating their pathetic price targets from the 41 I follow raises consensus price target from $198 to $204, not all that much, but there are 13 others I think aren’t up to the task. Eliminating them raises AAPL’s price target to $212.

    Think about it, replacing 20 so-called tech analysts with 20 commodity analysts raises AAPL’s price target to at least $212.

    Oh well, I can dream, can’t I?

    4
    July 31, 2018
    • Michael Thompson said:
      I will always contend that most of the known Apple analysts are paid shills that are doing their master’s bidding. They provide purposeful disinformation to temporarily manipulate the markets.

      However, during the recently completed 3rd fiscal quarter, there seemed to be NO impact when regular bear Tim Long or “Apple’s #1 analyst” (CNBC darling) Toni Sacconaghi downgraded Apple. In past years, we would have been down 3-5 points based on the ridiculous falsehoods by the purveyors of disinformation. Instead, we ended higher on some of the days that we were downgraded.

      The power of our buyback program is finally being felt. And if it’s being felt at 4.84 billion shares outstanding, what’s going to happen when the next billion plus shares are gone forever during calendar year 2020?

      Here’s what’s going to happen Apple Longs: Apple will not only achieve a market valuation, but a premium market valuation. Oh and one other thing: Victory!

      2
      August 1, 2018
  2. David Drinkwater said:
    Cramer: Preach! Tweet! Or whatever it is you do.

    For the audience: “hear, hear!”

    2
    July 31, 2018
  3. Gregg_Thurman@me.com said:
    Following up on Cramer’s suggestion I looked up the price/earnings ratios of the following firms:
    Pepsico
    Proctor & Gamble
    Coca-Cola
    Colgate
    Clorox
    Home Depot
    Wal-Mart
    United Parcel Service
    Fed-Ex

    The lowest ratio is 20.50 times earnings. The average price to earnings ratio is 24.44.

    AAPL will open tomorrow with a price to earnings ratio of about 17.60, hitting a high less than 18.00.

    1
    August 1, 2018
  4. Gianfranco Pedron said:
    Cramer has an interesting take.

    Would the sports world tolerate basketball games commented by hockey analysts?

    Yet, when it comes to people’s money and retirement savings, Wall Street seems to have no trouble forcing an equally ludicrous scenario onto investors.

    0
    August 1, 2018
  5. John Kirk said:
    I disagree with Cramer in this one important aspect: Apple is not a razor/razor blade story. Apple does not give away the razor (iPhone?). And yes, Apple makes tons of money from it’s “razor blades” (services), but those services would not exist were it not for the razor (iPhone?).

    So how does Apple do it? How do they make outrageous profits on both the razor and the razor blade? Because it’s the wrong analogy. What Apple sells is an ecosystem that they monetize via hardware. You have to pay to get into the Apple ecosystem (iPhone, iPad, MacBook) and once you’re there, you pay for the services because they integrate so well with the hardware.

    Apple is not a Razor story. They’re not a Razor blades story either. They’re an ecosystem story. And analysts still haven’t been able to wrap their heads around how much an ecosystem is worth.

    0
    August 1, 2018

Leave a Reply