Market Overview

Cramer: Why You Should Buy Apple On Weakness Every Time You Can

Share:
Cramer: Why You Should Buy Apple On Weakness Every Time You Can
Related AAPL
Apple Unveils $350 Billion Investment Roadmap, To Pay Record Tax
Upcoming Netflix Earnings: Subscriber Growth And Price Hikes In Focus
Moller Financial Services Buys Vanguard Small-Cap, Vanguard REIT, Apple Inc, Sells Vanguard ... (GuruFocus)

The case for buying Apple Inc. (NASDAQ: AAPL)'s stock on any short-term weakness has been made multiple times given the company's long-term prospects not only in the smartphone market but in rapidly growing services.

Back in September when Apple's stock was having one of its worst monthly performances in recent memory, David Seaburg of Cowen & Co argued that all of the "negative noise" about lackluster iPhone demand is not entirely accurate. Short lines at Apple stores are meaningless because consumers are merely shopping online instead and there is "no question that the demand for this phone is strong, especially for the X."

Cramer: Take Advantage Of The Dip

Apple's stock peaked just shy of $165 per share and fell to around $150 before staging a rebound, CNBC's Jim Cramer commented during his daily "Mad Money" show Monday. While the stock has rebounded to nearly $160 per share it is still off its all-time highs but it isn't too late for investors to be buying the stock.

And why did the stock rebound $10 per share from $150? For perhaps the same reason the stock fell from $165 to $150: much ado about nothing.

"When I look to see why I keep hearing there was never anything wrong with Apple the whole time," Cramer explained. "But the stock got too heated and then got too hated in a compressed moment."

In other words, Apple's stock "never should've been knocked down in the first place," he added. Investors who bought the stock near $150 or added new shares to an existing position were on the right side of the trade. These investors represent the "slower money," that is individuals who buy good quality stocks on any sell-off that appears to be "irrational."

By contrast, the "quick money" refers to those who find things it doesn't like about stocks and then "throws them away."

Bottom line is simple, Cramer concluded. The opportunities to buy Apple or any other high-quality stock with a strong prospect is merely "too darned good to pass up."

Related Links:

Why Apple Investors Shouldn't Worry About This Sell-Off

Jim Cramer: Investors Have 'One More Opportunity' To Buy Apple's Stock

Posted-In: Cowen David SeaburgCNBC Long Ideas Jim Cramer Tech Media Trading Ideas Best of Benzinga

 

Related Articles (AAPL)

View Comments and Join the Discussion!