NEW YORK ( TheStreet) -- "I'm raising my price target on Apple ( AAPL - Get Report)," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday. He said that his $200 price target on the company no longer applies if a new accounting change goes into affect. At issue are the Financial Services Accounting Board, or FASB, rules regarding how Apple can recognize revenue from its popular iPhone and less popular AppleTV products. Current rules force Apple to recognize this revenue over a 24-month period, meaning that sales today cannot be fully recognized for a full two years. This rule is antiquated and just plain dumb, said Cramer, as it treats Apple differently just because it makes a smarter phone with better software. Meanwhile, rivals like Nokia ( NOK - Get Report), which apparently make "less-smart" phones, are immune to the rule, he said.
Off the ChartsIn the "Off The Charts" segment, Cramer went head to head with colleague Dan Fitzpatrick over the chart of electronics manufacturing outsourcer Flextronics ( FLEX - Get Report). According to Fitzpatrick, the chart of Flextronics is thing of beauty, with the stock extending gains over its 50-day moving average, after retesting that average five times in the last few months. Given that the stock broke down at $8.60 a share, Fitzpatrick sees shares headed back to those levels before meeting any additional resistance. Turning to the stock's fundamentals, Cramer said he totally agrees with Fitzpatrick. He said the metric that matters in this business is utilization rate, and at 60% to 70% utilization, Flextronics is ahead of its peers. But Cramer has lots more to love about the company, including its diverse customer base, which means that no single customer can hurt Flextronics too badly. Likewise, the company is also geographically diverse, making it immune to any one country's economy, he said. According to Cramer, Flextronics also has reduced its inventory levels, begun manufacturing some higher-end products with higher margins, and has 21% of its business exposed to the red hot mobile device market. Trading at just 12 times 2011 earnings, Cramer said he is a buyer of Flextronics, which he calls the best house in a sizzling neighborhood.
Martha's Expanding PlateCramer welcomed Charles Koppelman, executive chairman of Martha Stewart Living Omnimedia ( MSO), to the show to discuss that company's new partnership with home improvement juggernaut Home Depot ( HD - Get Report), which he also owns for his