NEW YORK ( TheStreet) -- Rational or irrational? That's the trillion-dollar question when it comes to Piper Jaffray's prediction that Apple ( AAPL) could see its shares top $1,000. Jim Cramer told his "Mad Money" TV show viewers Tuesday that it's perfectly rational for investors to doubt this bold target, but after they do the math, $1,000 a share may not seem all that illogical. Cramer said that analyzing Apple, a stock he owns for his charitable trust
Off the ChartsIn the "Off the Charts" segment, Cramer went head to head with
Homing in on Intel and Microsoft, Little next noted that Intel has seen resistance at the $30-a-share level, but using a measured move analysis from 2007, he determined that Intel's next move is likely to be $35 a share, or a 25% gain. Microsoft displayed a similar pattern when using the measured move analysis, noted Little. He predicted this stock could see $47 a share during its next run higher. Cramer said he's a believer in both of these old-line tech names. He said that Intel pays a great dividend and has a healthy balance sheet, but Microsoft remains the sleeper of the group and has the most to gain. Cramer said he'll revisit both of these names later in the week.
Nike in Great Shape"Stop punishing Nike ( NKE)," Cramer pleaded to investors, after shares of the athletic apparel giant faltered when it reported earnings, almost two weeks ago. He said the quarter that was largely viewed as disappointing was actual just misunderstood. Nike reported a 3-cent-a-share earnings beat on revenue that rose 15%. Yet investors scoffed at the company's weaker gross margins, which fell 2%, and inventories, which were on the rise. But Cramer said he's not worried about gross margins, as they mainly come from an evolving product mix. He is also not concerned about inventories, since Nike's growth is outpacing that of its inventory build. Instead, Cramer said, there's only one metric that matters when it comes to Nike, and that's its future orders, which were up 15% worldwide. Nike is in great shape, said Cramer, especially given the upcoming catalysts of a lucrative $350 million NFL uniform contract and the summer Olympics to be held in London. Nike is also top dog in the athletic apparel market, with a marketing budget alone that rivals the enterprise values of its closest competitors. Cramer also touted Nike's new product initiatives, which include everything from high-tech wristbands to, of course, new high-tech sneakers. The company is also aggressively expanding in emerging markets. With near $6 a share of cash on its books, Nike trades at just 17 times earnings with a 13% growth rate. Cheap by any standard, concluded Cramer.
Executive DecisionIn the "Executive Decision" segment, Cramer sat down with David Hoster, president and CEO of EastGroup Properties ( EGP), an industrial real estate investment trust that lives at the heart of the American economy.
Hoster described his company as being in the distribution part of the economy. He also noted that EastGroup has mainly midsize warehouses with multiple tenants and caters to smaller customers. He said these smaller customers tend to distribute to and support larger metropolitan areas, so when those areas are hard hit economically, EastGroup feels it. That has been the case over the past few years, said Hoster, who noted that his business was hit harder than expected by the collapse in the housing market. But with the economy recovering, Hoster said that there has been a tremendous pickup in activity throughout the sunbelt. He said that rents will likely still decline slightly until 2013, but occupancy is definitely increasing and the company has more than enough cash to pay its nearly 4% yield. Cramer said with U.S. treasuries still paying far less than 4%, EastGroup remains a great investment and a way to play the continued recovery of the U.S. economy.
here to sign up for Jim's Daily Booyah to get the Mad Money recap delivered to your inbox. For more of Cramer's insights during the Lightning Round, click here .