Apple Deserves a Breakout

Stock quotes in this article: AAPL  

Jobs, and Apple, have a sense of style. Jobs has an eye. The iPhone will sell at a premium and get it, the same way Tiffany(TIF Quote) sells its goods at a premium and gets it, or if you want to use an analogy for the younger generation, how Abercrombie & Fitch(ANF Quote) gets you to pay much more for its jeans than you should.

The fashion price-to-earnings ratio is lacking for Apple. The shorts have been laying all over it -- and Microsoft and Hewlett-Packard(HPQ Quote) and Google -- for weeks now.

I think the rude awakening is coming.

Random musings: One of the reasons I see a quick short-selling rout is the way that Intevac(IVAC Quote) is trading. After the Komag(KOMG Quote) disappointment, after the blowout quarter that Seagate(STX Quote) had and the sad aftermath, if you were a short-seller you had to believe that shorting Intevac was risk-free. Oops! Glass half-full!

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At the time of publication, Cramer was long Hewlett-Packard.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. Click here to order Cramer's latest book, "Mad Money: Watch TV, Get Rich," click here to order his book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

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