CNBC’s Jim Cramer is not backing down from his “own Apple, don’t trade it” maxim despite the stock’s drop after earnings, in which the iPhone maker said it would stop providing results for its individual products.
“I am sure there are people who will just say, ‘You know what? I have to panic and sell Apple because Apple must be turning down and it’s going to be herd animals all over the place.’ And all I can tell you is wait a second,” Cramer, host of “Mad Money” and longtime Apple bull, said as Apple’s stock lost nearly 7 percent in after-hours trading.
“Apple’s ecosystem continues to grow,” he continued. “I accept that the stock is going to go lower, but remember, we just had 1000 Dow points that were worth capturing even if we get what I’m regarding as an undeserved crushing of the stock of Apple tomorrow.”
Cramer predicted that Apple’s slide could “cause a pause in the tech rally” on Friday, and that analysts would immediately downgrade the stock on what some saw as a muted forecast.
But he wouldn’t give up on “a stock that was up 30 percent coming in that reported an amazing number but was conservative and changed the way it’s breaking things down,” he told investors.
“Here’s what I say: I would still own it. I wouldn’t trade it,” the “Mad Money” host said. “For those who have never bought the stock, I would start nibbling. No need to be aggressive. The market, other than the last three days, hasn’t been all that welcoming of late.”
Click here for more on Apple. Click here for Cramer’s take on the stock market’s continued recovery.
The once-“safe” pharmaceutical stocks are becoming too difficult for investors to own, Cramer warned on Thursday as much of the stock market lifted off its October lows.
“These stocks … used to be safety-first situations. No longer,” he told investors. “These names are bouncing today, but the next time the market gets slammed, you don’t want to rely on a broken drug stock — or food stock, for that matter — to protect your portfolio.”
The toxicity has spread to the likes of Allergan, Cramer said. In an unusual move, shares of the Botox maker plummeted after the company reported earnings above Wall Street estimates and raised its guidance on Tuesday.
Click here for his full analysis.
Knowing the difference between real, federally-approved medicine and alternative treatments is key when it comes to cannabis, says GW Pharmaceuticals CEO Justin Gover, whose company’s cannabis-based epilepsy treatment launched Thursday in the United States.
“We think it’s’ really important to distinguish between what is medicine and what is not,” Gover told Cramer in an interview, responding to a question about whether Canadian marijuana producers should label themselves as “medical” marijuana companies.
“[The Food and Drug Administration] make[s] that determination, and where there are products that don’t meet FDA standards and have not been approved by [the] FDA, we don’t believe that they should be appropriately termed as medications,” Gover said on “Mad Money.”
Click here to watch and read more about his interview.
Enterprise security player Proofpoint has “a greater opportunity than ever before” as cyber-threats become more intense and multifaceted, Proofpoint Chairman and CEO Gary Steele told Cramer in a Thursday interview.
Proofpoint’s continued success “comes down to two things,” the CEO said: “[the] threat landscape continues to get more complicated, more malicious, and the fact that more organizations are moving to the cloud.”
Steele pointed to a list of recommendations released by the Securities and Exchange Commission, in which the SEC warned companies to evaluate how they deal with phishing scams and email fraud.
“We, again, think this is an important notification and catalyst for further business for us,” he told Cramer. “The threat landscape continues to shift. We see different forms of attacks, and so having a strong security posture is something that every company, whether they’re SEC-regulated or not, has to do.”
Click here to watch his full interview.
Federal Realty Investment Trust President and CEO Don Wood came prepared for Cramer’s question about whether his retail-focused real estate investment trust’s stock dividend was a worthy competitor to increasingly attractive U.S. bond yields.
“First of all, this is a special REIT. It’s not like most,” he said, adding that Federal Realty has grown its dividend every year for 50 years. “Now, let’s go further: with the stuff that we have done and have announced and some stuff that hasn’t been announced, we’ve got the ability or are highly likely to grow cash flow and earnings again ’19 over ’18 and ’20 over ’19 from things that we’re already doing today.”
“When you sit and you think about that, it’s hard for me to say that this is the same as a bond,” he continued. “Capital appreciation is important, and if you were to liquidate this company, Federal Realty today, sell every shopping center, we would effectively get significantly more than the stock is trading at today. That should matter, too, from a bottom-level perspective.”
Click here to watch Wood’s full interview, in which he addresses the Fed, e-commerce and more.
In Cramer’s lightning round, he zoomed through his take on callers’ favorite stocks:
Match Group: “I don’t know the service, but the stock is really inexpensive and it’s doing a remarkable job and I am a buyer of the stock. Of the stock!”
Carrizo Oil & Gas Inc.: “Because oil went down, Carrizo went down. There really is not much more to it because, boy, I’ll tell you that I think [CEO] Chip Johnson’s done remarkable work there. He’s expanded at the right time, he’s got a better balance sheet than people realize, but the group does not want to go higher because oil is now plummeting.”
Disclosure: Cramer’s charitable trust owns shares of Apple.
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