GO
Loading...

Cramer: Could This Be Apple’s Master Plan?

Friday, 8 Feb 2013 | 6:53 PM ET
No Huddle Offense: Apple's Extra Cash
Mad Money host Jim Cramer shares his final thoughts of the day. "Maybe Apple doesn't have a depression mentality after all," he says.

Lately there's been lots of consternation about why Apple keeps so much cash on the books. Cramer thinks he just might know why.

"Maybe everyone has Apple wrong," said Cramer.

That is, speculation on the Street suggests that without Steve Jobs, Apple may no longer have a grand vision. Jim Cramer, however, postulates that may not be the case.

In fact, in his final days, Jobs may have left the company with a vision grander than the Street can imagine. And perhaps management feels obligated to see it to fruition, no matter the cost.

"Hear me out," said Cramer. "One of the main tenets that Steve Jobs drilled into his colleagues' heads is that they must always strive to have the superior products. They must always offer something that you secretly dreamed of but so secret that you didn't even know you were dreaming of it."

What could that be?


There's been a lot of talk about the iTV but so far it's been mostly talk. Cramer however, wonders if it's coming in a way bigger and bolder than anyone could have ever imagined – anyone, that is expect Steve Jobs.

"What if Apple were your cable company? What if Apple were your telephone company? What if Apple were your your information technology and entertainment company? And what if they were all these things due to the creation of one new device?"

Cramer is certainly speculating, but he can't help but wonder if Apple is working on a new gadget that somehow offers it all. And Apple's enormous cash position is what led him to the conclusion.

"We have been thinking that CEO Tim Cook can't roll the cable companies the way Jobs rolled the record companies. But maybe, because Apple has so much cash it just doesn't matter," he said.

Getty Images

Think about it.

"No company in the world can go buy CBS when Sumner Redstone moves on, or Fox, when Rupert is no longer around, right?" said Cramer.

That is, no company other than Apple.

Cramer understands that an M&A of this size and scale may sound far-fetched.

"But I don't think it is far-fetched," said Cramer. "Today, Apple has enough money to buy Disney at a substantial premium to its current price and Apple still would not need to borrow money."

"CBS is a year's worth of cash for Apple.," Cramer added. "Time Warner could even be in play."

The Mad Money host thinks there are many, many avenues down which Apple could travel and still bring to fruition what may be Steve Jobs' final legacy and biggest accomplishment.

-------------------------------------------------------
Read More from Cramer:
Cramer: These Firms May Take a Hit
Apple? Einhorn Just Doesn't Get It!
Cramer: HOT Stock - Literally!
-------------------------------------------------------

"Apple could partner with Verizon on Fios, they could just write them a check," he said. "Think about it. The telco giant gets no real credit for running FIOS throughout major portions of this country. Why not cut Verizon a check for $65 billion now that it is built out and take half."

"Or, if you think these ideas are too grand, scale it down. Apple could buy DISH," Cramer added.

Any and all of these ideas are actionable because Apple has so much cash on the balance sheet.

According to reports, Apple amassed $23 billion in operating cash in its latest quarter, ending the period with a whopping $137.1 billion in net cash.

"Maybe the challenge from David Einhorn, is just too pedestrian," Cramer mused.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

  Price   Change %Change
AAPL
---
CBS
---
FOXA
---
DIS
---
VZ
---
DISH
---

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.