Cramer: Trading Apple on Exec's Departure
Don’t sell Apple just because its head of retail is moving to J.C. Penney, Cramer said Tuesday.
The “Mad Money” host was referring to the news that JCP scooped up Ron Johnson to be its next CEO, effective November 1. J.C. Penney's stocks jumped sharply in trading Tuesday.
“Apple is $4,000 a square foot,” Cramer said. “There isn’t a retailer who can touch that.”
Cramer also likes JCP off the news. Johnson is the greatest living merchant of all time, who did fantastic work at both Apple and Target, Cramer believes. And he doesn’t need to go to a place that is in a terminal spiral.
“This tells me that J.C. Penney can be saved,” he said.
But Cramer doesn’t recommend stocks that shoot up this high, which suggests he would wait for a pullback before buying.
In other market news, Cramer dismissed a survey that Facebook lost six million active U.S. users in May, but raised a concern about its pending initial public offering.
Cramer said he didn't trust the survey, adding “Facebook is a remarkable application.”
He also has a sense that CNBC sourcesmay be right when they predict Facebook’s IPO could value the company as much as $100 billion.
There could be trouble, however, if the social networking site decides to offer a “sliver” of its available stock to the public like another tech company, Zynga, is reportedly proposing. He believes that could cause another situation like LinkedIn , which had a phenomenal IPO but has since fallen 19 percent.
“That’s going to cause dot-com bomb two,” Cramer warned.
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