Jim Cramer says Buy Apple Inc. (NASDAQ:AAPL) Now
“The train is leaving the station and you can’t wait any longer,” Jim Cramer told the viewers on recent “Mad Money” TV show. He said the time to buy Apple Inc. (NASDAQ:AAPL), a stock he holds in his charitable trust is now. Cramer mentioned he was worried that consumers wouldn’t shell out the $500 necessary to buy an iPad, but the strong retail sales reports he’s seen over the past two weeks erased those concerns. He mentioned that retailers like Target Corporation (NYSE:TGT), Coach Inc. (NYSE:COH), Macy’s Inc. (NYSE:M), Saks Incorporated (NYSE:SKS) and True Religion Apparel Inc. (NASDAQ:TRLG) have all seen strong earnings,so there is no reason Apple should be the exception. The company plans to start advertising for the new device next week, and Apple’s retail employees will also get their first look at the product as well. Another huge factor for Apple is the enterprise customer. Cramer said he has heard that a number of application developers are looking for ways to make the iPad work for businesses, especially doctors and lawyers and even bankers and brokers. Considering that shares of Apple are well over $200 a share and hitting new 52-week highs, Cramer said it might seem like a risky call to recommended Apple so high. “It’s not,” he said. Apple currently has $43 a share in cash on their balance sheet. When you subtract that number out and figure in the $13,50 a share that analyst think Apple can earn, Cramer said Apple is trading at only 13 times its expected 2011 earnings, the same multiple as Dell Inc. (NASDAQ:DELL), IBM (NYSE:IBM) and Hewlett-Packard Company (NYSE:HPQ), three firms that don’t have the iPad, or the iPhone or the iPod. “Don’t let the high price tag deter you,” Cramer said, “the time to take the bite out of Apple is clearly now.” Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!
1 Responses »
Trackbacks
Leave a Response

