Cramer: This is not a bad place to buy Apple (video)

“I understand that the charts are saying bad things, but you have to start somewhere with Apple.” —CNBC’s Jim Cramer

Cue the YouTube video:

My take: If Cramer was signaling a bottom, he was a little off. As I type this (9:05 a.m.), Apple is down $9:40 (3:21%) in premarket trading.

19 Comments

  1. Martin Beutling said:
    I wouldn’t re-enter AAPL anytime before the next conference call, no matter WHO is saying WHAT.

    2
    February 27, 2020
    • Jacob Feenstra said:
      Precisely. There is much more pain to come. Then again, in defense of Cramer, any time is a good time to enter AAPL, certainly if it’s 10% below its high. But we haven’t bottomed out yet.

      4
      February 27, 2020
  2. Fred Stein said:
    Agreeing with Philip, Martin, Jacob. Let’s drop the pretense that anyone can predict anything. And, more so since COVID-19 is hard to detect at the early stage when it is still infecting others.

    And, we have secondary effects of general fear, and the market’s reaction.

    The mortality rate for those 40 and younger, is .2%. At scale that’s a big number, a human tragedy, but not an economic collapse. Apple and AAPL will recover.

    2
    February 27, 2020
  3. Fred Stein said:
    FWIW:

    Combined, Berkshire and Apple have over $300B to push on to this poker table.

    2
    February 27, 2020
  4. Thomas Larkin said:
    Trimmed some (just to the sidelines), people are jittery, and still an unpredictable situation as to both the effects of the virus and its effects on the larger market.

    0
    February 27, 2020
  5. Brian Loftus said:
    Even a “collapse” with a 30% pullback from its all time high puts us at a stock price 230. A price we have not seen since Oct 15, 2019. Not sure it will drop that low but I certainly would not be surprised. There will be more bad news than good news for the Corona Virus for at least another week.

    0
    February 27, 2020
    • Dan Scropos said:
      It sure feels like this thing will land between $200 and $230. At any rate, Apple and I will both be adding to our positions very soon.

      2
      February 27, 2020
  6. John Konopka said:
    Volume was quite high today, over 70 million, roughly three times recent typical volume. Unfortunate that we may have to wait for the next earnings announcement for some solid news. Disappointing that Tim didn’t address this yesterday. Maybe he couldn’t in light of the uncertainty.

    0
    February 27, 2020
  7. Mark Visnic said:
    Two months after two consecutive 90% down S&P 500 days, the SPX has been up 100% of the time with an average gain of 7.6% Twelve months after that circumstance, the S&P again is up 100% of the time with an average gain of 24.8%. The reason is 90%+ selling days indicates panic selling. Panic selling is not well reasoned. It is emotional, not logical. Emotion both kills the panic-stricken seller and aids the rational buyer. This sell-off isn’t about Apple. It is an opportunity. One year from now, Apple will be higher than 270. If you don’t need to sell in the next year, it is a buy here. It will also be a buy at 260, 250, 240, and lower by the same logic so, it is prudent to keep some dry powder in case it were to get there. I don’t expect that to occur but, if I’m wrong, I’ll rejoice!

    The bears say: Apple was up 100% last year, it’s due to fall much further. The bears don’t understand why Apple was so underpriced at the start of the 100% gain and why Apple is undergoing a favorable multiple expansion repricing as opposed to a speculative “one-and-done” price spike. Don’t be influenced by that noise.

    2
    February 27, 2020

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