My question is, if apple is cheap at $329.57 where does apple become expensive, $500, $683, $742, $879, $937, $1056, $3754???? And when does an analyst actually come out and say that shares are fairly priced with earnings.
Apple Still Cheap at 52-Week High
Published: Monday, 3 Jan 2011 | 3:22 PM ET
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By: Tom Brennan
Web Editor, Mad Money
Apple, whose i-products have revolutionized music, smartphones and mobile computing, trades at a forward multiple of just about 15 times earnings. Amazon [AMZN 184.22 4.22 (+2.34%) ], howeverâwhich is no doubt a great company in its own right, but stillâtrades at 50.
No wonder Cramer called Apple [AAPL 329.57 7.01 (+2.17%) ] âradically cheapâ during Mondayâs âStop Trading,â even though the stock had hit a new 52-week high at about $330. The âMad Moneyâ hostâs 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 âgravityâ of that level, more gains should be coming.
âItâs going higher,â Cramer said of Apple.
Cramer praised Bank of America [BAC 14.19 0.85 (+6.37%) ] 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 Moynihanâs history as a lawyer that accounted for the deal, something a typical banker may not have been able to accomplish.
âThis was just a lawsuit masquerading as a bank,â Cramer said of Bank of America, âand it just got won.â
He thinks BAC could climb to $18. Huntington Bancshares [HBAN 7.11 0.24 (+3.49%) ], another of Cramerâs favorite banks, âcould easily doubleâ to $14, he said. He thinks that even if these stocks do reach these levels, they will still be cheap.
