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Apple Inc. Message Board

  • aea_1b aea_1b Feb 7, 2014 9:41 PM Flag

    Is Tim Cook trying to tell you something?

    You might want to double check your messages. Jim Cramer thinks you could have something from the Apple CEO.

    Not literally of course, but Cramer thinks there's a message for you in a figurative way. It stems from the recently announced $14 billion buyback of Apple stock.

    Now, it's not the buyback, per se, that Cramer finds very telling. It's the adjectives Tim Cook used to describe the buybacks.

    "In an interview with the Wall Street Journal, Cook said the buybacks were done in a way that was aggressive and opportunistic, noted Cramer

    Cramer takes the phrasing to mean that Apple is looking at its own stock strategically and buying back a substantial number of shares at a time when it's cheap.

    That is, management knows how much potential lies ahead, but the Street just doesn't get it.

    It means, "The company truly believes that the price action in the stock is ridiculous versus the prospects," said Cramer.

    Now make no mistake, Cramer isn't saying there's a message in every buyback. Quite often, the "Mad Money" host finds buybacks to be non-events.

    "When I see buybacks that are done irrespective of price, which is most of the time, I have to laugh. They can be such wastes of money," said Cramer .

    However, the Apple buyback isn't on autopilot. It isn't irrespective of price. It's strategic and therefore speaks to Cramer.

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