Tuesday, January 18, 2011

Jim Cramer says Apple Stock is "Dirt Cheap" and "Apple is a Rainforest .. its Competitors are like the Gobi Desert".

The P.T Barnum of the investing world Jim Cramer, ecstatic with Apple's earnings raises his price target to $400 and comments why we should buy aapl:

Selling at 14 times earnings, Cramer called Apple's stock "dirt cheap."
Apple is like a rain forest, Cramer said, because everything grows there. Its competitors, on the other hand, are like the desolate Gobi desert. Not much growth to speak of, he said

(I agree with Cramer's sentiments but just tickled at his typical colorful language. Love him or hate him Cramer was the one who said Apple was going to $300 more than a year ago when many said that was crazy. Some other analysts say that if you value Aapl like some other tech stocks with similar growth rates it would be worth $750 or more. Amazon for example has a P.E of 70 or so.)