Insiders' Blog

Piper Jaffray analyst Gene Munster sent WSJ's MarketBeat blog some thoughts on why Apple (Nasdaq: AAPL) sold off so hard into the close yesterday.  It was widely reported that a possible T-Mobile deal was part of the reason for the selling.

Here is what he said:

"I heard four reasons why the stock got hit. 1.) T-Mobile getting the phone not Verizon 2.) soft retail sales 3.) greater competition from NOK, and 4.) Psystar trademark issues. In my opinion investors were stretching for reasons. None of them seem to have enough weight/truth to justify the drop in shares.

My take, there was a big seller for who knows what reason. People got worried they were missing something, and the stock tumbled. None of the mentioned reasons impact Apple's fundamentals."

Shares of Apple closed down 1.5% yesteday, and are up 0.7% today.

In a statement that essentially admitted guilt of being unfaithful to his wife, the shining endorsement star has potentially fell from the mountaintop of advertising glory.

The days may be gone when turning on television meant being bombarded with ad on top of ad using the world's No. 1 golfer, Tiger Woods, to sell everything from razors to sports drinks.

Early Wednesday, Woods, 33, released a statement admitting that he has not lived up to the standards that he has built his image upon -- an image that has made him the highest paid athlete in the world -- with $100 million annually coming in from PGA tour earnings and numerous lucrative endorsement deals.

In a sports world that has seen hero after hero fall from grace, Woods has maintained a squeaky-clean, golden-boy image throughout his 13-year professional career.

Woods has been the go-to-guy whenever there was a controversy involving an athlete, with the media being quick to point out how he has always done the right thing. An athlete that is at the top of his sport, and he will never get caught in the media crosshairs for a transgression.

Well that's over now.

What's next? Is the Geico Gecko going to get caught trafficking peyote across the border? Are the Budweiser Clydesdales going to test positive for steroids?

"I have not been true to my values and the behavior my family deserves," Woods stated. "I am not without faults and I am far short of perfect. I am dealing with my behavior and personal failings behind closed doors with my family."

While the statements are not a clear admittance of infidelity, the perception by the public will take it no other way.

Few celebrities are so closely tied to the products that they endorse than the way Woods is. Nike's (NYSE: NKE) golf division is completely Tiger-centric, as the golfer helped put the company on the links with authority since using product branded with a swoosh during his many on course achievements.

Companies have poured money at Wood's feet, cashing in on the superstars popularity. Now this trend will surely slow as the public perception of Tiger is going to forever linked to this indiscretion, no matter how badly tiger wishes to keep the matters private.

The situation arose on November 27 when he crashed his car into a fire hydrant outside his Orlando home in the early-morning hours. Rumors began to swirl about domestic violence and possible marital infidelity Woods and wife Elin Nordegren.

The latest issue of US Weekly has a story claiming that that Woods has had a 31-month affair with a Los Angeles cocktail waitress. Jaimee Grubbs told the magazine that she had met Tiger at a Nightclub the week after the 2007 Masters, and has 300 messages as proof.

Whether the story is true or not, the damage to Wood's public persona is done. Maybe the golfer can seek the advice of how something of this nature can affect endorsement dollars from Kobe, A-Rod, or Vick, who have all lost massive endorsement dollars in the past for off-field transgressions.

While Tiger will not face criminal charges in the matter, any well known endorsement giant is aware that being beaten up in the court of public opinion can be just as financially damaging.

(NOTE - Currently, none of his sponsors have pulled out (Gilette (NYSE: PG), Gatorade (NYSE: PEP), AT&T (NYSE: T), Buick, and Nike (NYSE: NKE) to name a few...)

Cramer believes that Jarden Corp. (NYSE: JAH) will bounce up as the product mix is right and folks might be sprucing up their homes, and kitchens in particular, instead of going out to spend money.

Jarden's CEO Martin Franklin spoke with Cramer, and said that retailers wouldl ike to focus on a fewer amount of companies that provide more, rather than more that provide less. Mr. Martin was also conservative on his view, noting that Jarden has beat estimates for the past several quarters, and sees a good 2010. He also noted that more families are taking "stay-cations," and their products provide a better value for home entertainment (i.e. - having guests over, enjoying a home-made gourmet breakfast, etc.)

Cramer noted that Jarden products occupied up to 2/3 of shelf space at researched Target (NYSE: TGT) stores. Target is America's number two retailer behind juggernaut Wal-Mart (NYSE: WMT).

Jarden's brands include Coleman Outdoor Gear, Marmot, Oster, Sunbeam, Pine Mountain, Mr. Coffee.

On his website, Tiger issued the following statement:

I have let my family down and I regret those transgressions with all of my heart. I have not been true to my values and the behavior my family deserves. I am not without faults and I am far short of perfect. I am dealing with my behavior and personal failings behind closed doors with my family. Those feelings should be shared by us alone.

Although I am a well-known person and have made my career as a professional athlete, I have been dismayed to realize the full extent of what tabloid scrutiny really means. For the last week, my family and I have been hounded to expose intimate details of our personal lives. The stories in particular that physical violence played any role in the car accident were utterly false and malicious. Elin has always done more to support our family and shown more grace than anyone could possibly expect.

But no matter how intense curiosity about public figures can be, there is an important and deep principle at stake which is the right to some simple, human measure of privacy. I realize there are some who don't share my view on that. But for me, the virtue of privacy is one that must be protected in matters that are intimate and within one's own family. Personal sins should not require press releases and problems within a family shouldn't have to mean public confessions.

Whatever regrets I have about letting my family down have been shared with and felt by us alone. I have given this a lot of reflection and thought and I believe that there is a point at which I must stick to that principle even though it's difficult.

I will strive to be a better person and the husband and father that my family deserves. For all of those who have supported me over the years, I offer my profound apology.

(NOTE - Currently, none of his sponsors have pulled out (Gilette (NYSE: PG), Gatorade (NYSE: PEP), AT&T (NYSE: T), Buick, and Nike (NYSE: NKE) to name a few...)

Also, within the last 24 hours, a cocktail waitress in L.A. claims to have had a 2 1/2 year affair with Tiger and has over 300 text messages to prove it.

Jim Cramer loves J. Crew Group (NYSE: JCG), and the stock has reportedly shot up 397% since Cramer recommended it on December 1, 2008. Crame's doesn't believe that you've missed the move though, as J. Crew has room to grow.

But not immediately! Wait for a pullback, Cramer suggests. One of his favorite technical advisors suggested that JCG could move all the way up to $50 per share, a nice 12% jump from where it's at today.

The sole reason behind the potential growth seems to be company CEO Mickey Drexler, who brings a deadly combination of business and fashion knowledge to J. Crew. He recently was the CEO over at Gap, Inc. (NYSE: GPS) and turned that company around into a profit machine.

Drexler no doubt employed an inventory reduction strategy that will allow J. Crew to maintain its pricing and still be able to empty its shelves over the holiday season.

Mickey created such successful Gap spin-offs as Old Navy and Banana Republic, and contributed to J. Crew's "CrewCuts" for kids and "Madewell" for women. Both are presidential quality, as the Obama kids been seen sporting the fashionable CrewCuts wear around town.

It intangibles like this, Cramer alludes to, that made a company like JCG tough to value. He recommends to start a modest position now, and dollar cost-average your way to more shares as the price pulls back.