Cramer strongly recommended that Apple longs take some of their positions off the table. He didn't say take out the cost basis. He didn't say, Well, you'll have a 35% cap gains tax to pay. No. He adamantly said, Take some off the table. What he didn't say is that Apple is a great growth company, perhaps the greatest on Earth. What he didn't say is that Apple's products are superior — not flawless — to any other offering by any other company. Superior. Cooler. Better.
AAPL closed that day (Friday) at $143 with no inkling of bad news ahead. So, when iPhone numbers didn't jive yesterday on AT&T's information, panic selling set in and the stock plummeted to $134. The real longs dug in and held their shares. They were rewarded today, and AAPL hit $150 in extended hours after another brilliant earnings report.
What will Cramer tell his groupies now? That they should've bought back in at $134? That this is a buy at $150? Will he even dare to tell them that he screwed up on this call, that they would've been FAR better off just holding their shares and avoiding the major cap gains tax? Doubt it. Hey, Cramer does a service for us average Joes with his hour-long daily show and I try not to miss it. The man does hustle his ass off.
But anyone who took his word about Apple was a weak hand to begin with. Fortunately, it won't be too late to get back in AAPL for another nice climb. Next time, the groupies might not be so quick to dump shares on Jimbo's word.
Disclaimer: Pupule Paul is a teeny bit long AAPL.
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