This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

[video] Jim Cramer Quick Take: Icahn May Be Aiding Apple

NEW YORK (TheStreet) -- Apple (AAPL) reports earnings after the close on Monday, and TheStreet's Jim Cramer is with Brittany Umar, discussing expectations. 

Cramer suggested that a good report could send shares to $550, while a bad one could push it down to $475, a level that Cramer said he would consider to be a buying opportunity.

Cramer said the last time the stock was getting hit hard, it found support when the dividend yield reached 3%, suggesting this could again act as support if the stock starts to sell off. 

Hedge fund manager Carl Icahn could also create a support level for the stock with his vocal ownership role, as he calls for a huge share buyback, Cramer said.  

Cramer said the following things keep Apple attractive: its price-to-earnings ratio of 12, its solid dividend yield and the new iPhone and iPad products. 

The iPhone launch included two different versions, the 5S and 5C. The former has better margins and seems to be selling better than the latter. 

Although analysts have been ratcheting up quarterly estimates, the company also boosted its expectations to the higher end of its previous guidance range.

Cramer said the holiday quarter should be quite bullish, with the new iPhones and iPads in the mix. 

Next quarter should bode well for the company, which appears to have momentum in both its share price and its new products, said Cramer. Icahn and a potential dividend boost could add to that momentum, he concluded.

At the time of publication, Action Alerts PLUS, which Jim Cramer co-manages as a charitable trust, owned shares of Apple.

-- Written by Bret Kenwell in Petoskey, Mich.

Follow @BretKenwell

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,546.09 -17.21 -0.10%
S&P 500 1,929.50 -1.17 -0.06%
NASDAQ 4,373.2640 +3.4910 0.08%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs