Originally Posted by
Velo Vol
Well, at least that way we wouldn't risk getting fat . . . ter.
So Jim Cramer says to go for it if you can get Facebook on the IPO. Otherwise, don't bother.
Which corresponds with my non-scientific observations on these "tech" companies. A bunch of yahoos jack up the price in the first few hours of trading. Then within a few hours, days, or at most weeks, it comes back to earth--20-50% off the highs.
I think Cramer is saying if you can get in on the IPO, buy it as a trade, take the quick profit after the opening day pop and run. As an investment, the stock strikes me as quite risky. Apple was once a riskier investment than it is today. I am firmly convinced that the only thing that will stop AAPL from doubling in the next 3-4 years is some unforseeable world crisis, financial market meltdown or a major mis-step by the company. The last of those possibilities is the least likely in my view. But it's stocks, never a sure bet. That being said AAPL @ $455/share is relatively solid bet, and I'll be very surprised if that doesn't become a dividend paying stock later in 2012. They have to do something with their $100 BILLION in cash. That's ridiculous. I've never heard of ANY company hoarding that much cash, not EVER.