I note that Andrew Tobias and Jim Cramer have opposing views on Apple's stock (AAPL).
Tobias is suggesting that now is a good time to sell it, while Cramer thinks it's time to buy.
Now Tobias has a good deal of credibility with regards to Apple just now, having recommended it about a year ago when it was selling for about twenty bucks, and it's now well over $60, a 200% gain. Actually, he was a bit cagier; he recommended buying the long-term calls (or LEAPS) which could be had for around $4 and which are now worth around $43, which is nearly a 1000% gain.
He writes in part, "while I can make an (uninformed, seat-of-the-pants) case for AAPL at 200 a few years from now, I have to think that if you had the good fortune not to see or act on my earlier profit-taking suggestions, now you surely should. Sell."
Meanwhile, Cramer, whom James Wolcott likes to refer to as "Creampuff", sees things rather differently:
Maybe I'm just too Apple-centric, maybe because I just can't compete with my daughter's mini-iPod, maybe because every gift I have gotten her revolves around her Apple mini, maybe because I think that soon you will be able to buy an iPod that allows you to punch in some digits and download from Sirius Satellite (SIRI:Nasdaq) -- whatever the reason -- I just can't believe that Apple sits where it is right now and isn't higher.
already has been downgraded three times. You have taken a substantial amount of the "Xilinx (XLNX:Nasdaq) -Altera (ALTR:Nasdaq) " risk out of it, precisely because it has been taken to the woodshed three times. No one else will do it between now and Christmas.
Here is a stock that has the clearest shot to beat all the numbers for Christmas. It is a company that has the most momentum of any business I know. Best of all, it
It should be pointed out that earlier this year, Creampuff, er, I mean Cramer, recommended buying Apple at around 28, but then got spooked out of it by a Wall Street Journal article at about 32 or so.
Decisions, decisions...
(In fairness to both of them, it should be pointed out that Tobias and Cramer have different time horizons. Tobias specifically recommended holding Apple for a year to benefit from the tax advantages of long term gains; Cramer's timeline is somewhat shorter. He seems to be suggesting holding it just until Christmas.)
Posted by jt at December 12, 2004 09:33 PM