Tonight on the 500th episode of CNBC’s MAD MONEY, Jim Cramer also came out a bit different than just recently on Apple (AAPL-NASDAQ ) and Qwest Communications (Q-NYSE ). Whatis interesting is that Cramer came out on Apple and said the reason forthe drop today on the programming concern is something he feels iswrong and you can buy that weakness. On Qwest Communications, JimCramer said this is very odd and out of the ordinary and was notexpected. He even replayed an interview tape where Notebart said he wasstaying.
Buying Apple on pullbacks has worked for the last fewyears in the stock, but we still have a couple weeks before the iPhonerelease and ship dates. This means that unless this is the trueexception to the rule that we’ll end up seeing some large profit takingimmediately before and during the news cycle. There’s always a shot itcould be different this time, after all it is Apple we are talkingabout. This change of his stance was also a bit different than what hegave on a prior pre-iPhone strategy. In all fairness, this is one of his "New Four Horsemen of Tech."
Notebart,the retiring CEO of Qwest, just told Cramer last month that he was NOTretiring and that is a concern for me too. Out of personal experience,when a loved CEO leaves it is often hard to replace him. When it is aloved CEO that just earlier said he wasn’t leaving the company, thenyou have to worry about something sinister. Even if nothing bad is onthe horizon in the case of Qwest, the statistics usually work out to’not be in’ on strange developments such as this.
Jon C. Ogg
June 11, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
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