What Cramer Said, What Apple Said

If you bought Apple (AAPL) for a trade based on Cramer's recommendation on his show "Stop Trading" at 3:30 PM, you got caught with your pants down....around 3 hours latter, Apple disclosed additional irregularities related to stock options.

Bullish At 3:30 PM:

Jim Cramer's Stop Trading!
Countrywide Club By TheStreet.com Staff8/3/2006

Cramer also said a recent win at Apple (AAPL - commentary - Cramer's Take) will be bullish for the tech giant. "I don't think people know how big iPod for Lexus" could be, Cramer said, adding that a linkup between Apple and the Toyota (TM - commentary - Cramer's Take)-owned carmaker "could be a real rival to Sirius (SIRI - commentary - Cramer's Take)." Cramer said Apple, up 3% at $70, should soon hit $75....Read more: HERE

Bearish at 6:40 PM:

Live In Play (www.briefing.com), 8/3/2006

AAPL Apple Computer Announces Update Regarding Stock Option Grants

Co previously announced, an internal investigation discovered irregularities related to the issuance of certain stock option grants made between 1997 and 2001. A special committee of Apple's outside directors has hired independent counsel to perform an investigation, and the Co has informed the SEC. As a result of the ongoing investigation, the Company will delay the filing of its Form 10-Q for the quarter ended July 1, 2006. Although the investigation is ongoing, the Co has discovered additional evidence of irregularities. In light of this, management has concluded, and the audit committee of the board of directors agrees, that the Co will likely need to restate its historical financial statements to record non-cash charges for compensation expense relating to past stock option grants. The Co has not determined the amount of such charges, the resulting tax and accounting impact, or which periods may require restatement. Accordingly, the Co today filed a Form 8-K stating that the financial statements and all earnings and press releases and similar communications issued by the Co relating to periods commencing on September 29, 2002 should therefore not be relied upon....Read more: HERE