As recently as last week, the host of CNBC’s Mad Money, Jim Cramer, has made some strong comments about Apple, Inc. (AAPL).
To be fair, Cramer’s comments always seem to be strong, but he’s been adamant about the tech giant and its long-term viability. Yet the warning signals are going off left and right, and Cramer may be leading his followers down a dangerous path.
Here’s what Cramer has said about trading AAPL, why it’s wrong, and how you stand to make easy money by seeing the truth…
The first thing I want to note is that AAPL reports first quarter earnings after the market closes today, April 26. The reaction to that earnings report will likely have an immediate impact on the price of AAPL stock one way or another.
This article is NOT about that short-term reaction. Instead, it’s about the big picture as it relates to AAPL, taking into account every indicator.
With that being said, let’s take a look at some of Cramer’s recent comments:
“I see a lot of people really concerned about Apple. All I can say is, look, if you want to sell something at 9 times earnings, be my guest. I don’t want you in the stock.”
Cramer clearly views AAPL as a stock to buy and hold onto long term.
But virtually every signal, alert, and warning beacon is telling me that Cramer is dead wrong this time around.
First of all, let’s talk about the iPhone.
AAPL is a company that relies on the iPhone for somewhere around 70% of its revenue. That’s not exactly an attractive quality for a major company, especially considering the challenges now facing the iPhone specifically, whether it’s the lack of new innovations or the struggles now being faced in China.
And the company itself has already been warning us about declining iPhone sales!
AAPL stock is also in a sharp decline when you take a step back and look at the longer-term results.
AAPL peaked in May of 2015 at $130 per share and has since been dropping, now down to $105 per share. Yes, AAPL has experienced a couple of rebounds on the way down, but that’s only naturally for a descending stock.
These are just a few reasons on the surface of the situation for why AAPL is showing no intent to stop falling and start climbing. And that’s why I’m content to ride AAPL all the way down and make easy payday after easy payday the whole way down.
So I’ll happily be your guest to be bearish on AAPL, Mr. Cramer. And I’ll gladly rip more cash out of the stock market as I do so, like the $227 that every Black Market Income subscriber just received no matter what happens next for this stock.
Great looking forward working with you guys.