Apple Still Cheap at 52-Week High
Apple, whose i-products have revolutionized music, smartphones and mobile computing, trades at a forward multiple of just about 15 times earnings. Amazon , however—which is no doubt a great company in its own right, but still—trades at 50.
No wonder Cramer called Apple “radically cheap” during Monday’s “Stop Trading,” even though the stock had hit a new 52-week high at about $330. The “Mad Money” host’s price target for AAPL had been $325, but he will soon, along with a number of analysts most likely, issue a new target soon. He said the fact that Apple had broken through the “gravity” of that level, more gains should be coming.
“It’s going higher,” Cramer said of Apple.
Cramer praised Bank of America CEO Brian Moynihan for negotiating a successful $2.8 billion settlement with Fannie Mae and Freddie Mac. The two mortgage companies had claimed that BofA sold them bad home loans. Cramer said it was Moynihan’s history as a lawyer that accounted for the deal, something a typical banker may not have been able to accomplish.
“This was just a lawsuit masquerading as a bank,” Cramer said of Bank of America, “and it just got won.”
He thinks BAC could climb to $18. Huntington Bancshares , another of Cramer’s favorite banks, “could easily double” to $14, he said. He thinks that even if these stocks do reach these levels, they will still be cheap.
When this story published, Cramer’s charitable trust owned Apple and Bank of America.
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