"I have to figure out whether to raise my $150 price target for
," Jim Cramer said on TheStreet.com TV's Wall St. Confidential
Web video Thursday.
Apple's numbers, he said, were "very compelling." What Cramer said he found most compelling was that the guidance was a total sandbag.
"It has been for six straight quarters," he said. "They say they're going to do 60% of what they ultimately do. Apple's going higher; there's no doubt in my mind."
Cramer said that when he started
11 years ago, it was predicated on a couple of ideas.
"One is that I was going to be true to what I did at my hedge fund," he said. "In other words, I was not going to have two styles. I was not going to say you should buy and hold, but I don't buy and hold. What I was going to say is that I like to buy weakness," Cramer continued.
When Apple reached $143 last week, Cramer advised people to take something off the table and trade around the core position. And then, when the stock dropped yesterday, Cramer said he told people to start rebuilding their positions for what they had sold. But he didn't want to be more aggressive about it because he didn't want people to put more capital at risk than they already had, he said.
Cramer said he sees Piper Jaffray and Deutsche Bank with a $200 price target for Apple. However, while he does believe Apple will continue to go up and will go through $150, "it is now above my range of what I'm comfortable with, even as I predict that the earnings grow," he said.
"I never like to recommend stocks that are selling at more than twice their growth rate," Cramer explained. "Apple, at $200, is well beyond twice its growth rate.
"It's very important for people to recognize that there are prices that are too high to pay and there are prices where you have to sell," he went on. "And $200 is a price I would have to sell. I am struggling with the idea of $165 as a possible price target."
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
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