Jim Cramer's Best Blogs
By Jim Cramer 10/27/12 - 01:40 PM EDT
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If we were to hold Apple to Amazon's standards it would be at $1,200.
Now, I think you own Apple as its products are loved, if it can make them fast enough and it is storming the enterprise. I see its products triumphing in the enterprise as the users simply won't tolerate Hewlett-Packard, Dell (DELL) and Research In Motion (RIMM) anymore. They want the Apple ecosystem. All of the canards about staying on Microsoft (MSFT)-Intel (INTC) weren't answered by Windows 8, but more than 90% of the corporate world is stuck on it, and the IT people don't even feel threatened. Amazon, on the other hand, doesn't have to answer to anyone about how it is spending or even what it is doing. To me it's nuts. It should be totally the other way around as we told subscribers last night for Action Alerts PLUS. But it doesn't matter. The judgments are being rendered, and Apple falls short and Amazon's better than expected. So it goes in this, the toughest earnings season since the crash of 2008-2009, when the worst man wins. Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AAPL.
A Market Beholden to Fear Posted at 11:55 a.m. EDT on Friday, Oct. 26 When is enough selling enough? When do you oversell? I keep thinking of some of the quarters that were reported and how sellers came in both before and after, and how wrong the sellers were before and how wrong they could be after. I keep thinking about two different examples this week that, frankly, are horrifying to me as an investor because they show how the market is totally beholden to scared people who don't know what they fear other than the fear of other sellers. The first instance is Broadcom (BRCM). When it reported, the quarter was a clean beat and raise, mostly because it is levered to all of the sales being made in smartphones, and Apple (AAPL) and Samsung are its biggest and best clients. We all know it has the finest technology, and CEO Scott McGregor is highly regarded in the industry. When the company reported, it immediately ticked up, as it should have given it's the only semiconductor to deliver on expectations and then some. The stock moved to $34 from $33.50 in the few minutes between the opening and when I interviewed McGregor. I joked with him how in this market, even as the company totally delivered on its forecast, there would be someone disappointed and another one scared, so why not take some of your $2 billion dollar cash treasure chest and go $33 big for 1 million shares. It was an absurd suggestion given where the stock was going. But the next day, the stock traded at $31.50.