Cramer's 'Mad Money' Recap: My New Price Target for Apple: $300 (Final)

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NEW YORK (TheStreet) -- "Sometimes the best move is the most difficult to make," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday.

He said it may seem counterintuitive to recommend Apple (AAPL) after the stock had a monster $10 move today, but this is just the beginning.

Cramer's Upcoming Book Signings Tuesday, Oct. 20, 7 p.m. Mendham Books, Mendham, NJ (84 East Main St.) Tuesday, Nov. 17, 7 p.m. Barnes & Noble, Manhattan (33 East 17th St.)

Cramer said on the company's conference call, Apple executives said the magic words he always longs to hear: It cannot meet demand for its products. He said Apple is currently struggling to meet demand for both its popular iPhone, as well as for some of its Macintosh computers. Cramer asked, "Where else in this recession- ridden economy are their shortages for high-end devices?"

With Apple currently only representing 3% of cell phones and 4% of computers worldwide, Cramer said this is only the beginning of a huge move for the company. Cramer said he expects to see the iPhone dominate the cell phone market, just as the iPod did with portable MP3 players. Apple currently commands a 70% market share in the portable music market.

Given the huge potential at Apple, Cramer said he's raising his price target from $264 a share to $300 a share. He said investors should be willing to pay one times the growth rate for a high quality growth company like Apple.

That translates to 30 times Apple's estimated earnings of $13 a share, or $390 a share. Cramer said since everyone would think he's nuts to suggest $390 a share, he's using a conservative price target of just $300 a share.

Cramer said if investors are tempted to take a bite out of Apple, now's the time!