Ford Coming On Strong

If you go through the Ford (F - commentary - Trade Now) quarter, the only thing you don't like is the hint that it has to raise more money. Everything else says this company has the right models, the right amount of inventory and the right amount -- this is really important -- of leadership in Alan Mulally.

Yes. Leadership. An when your competitors are in disarray -- Chrysler and General Motors -- and you have the right models and the cheap financing, courtesy of the expanded Cash for Clunkers program, you are going to go higher.

What I want to warn people about, though, is the cash burn and the intelligent way that Mulally knows about financings. If I were Mulally, I would, right now, either do a new convertible preferred or another giant equity offering, as this stock may be the stock for a third-quarter gain of 3% if JPMorgan is right.

So, here's what I would do. Hold on if you own it. Buy the preferred if you don't, as that's going to go up on the news, and then participate in the offering.

These guys are coming on strong, and you can only have a couple auto plays that are solvent -- Johnson Controls (JCI - commentary - Trade Now) and Tenneco (TEN - commentary - Trade Now) and BorgWarner (BWA - commentary - Trade Now) -- in a group that people want exposure to, now that we know that Cash for Clunkers isn't going away.

At the time of publication, Cramer had no positions in stocks mentioned.

ALL JIM CRAMER BLOG ENTRIES | POST A COMMENT | READ COMMENTS  

---

Jim Cramer is co-founder and chairman of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. To order Cramer's newest book -- "Jim Cramer's Stay Mad for Life: Get Rich, Stay Rich (Make Your Kids Even Richer)," click here. Click here to order "Mad Money: Watch TV, Get Rich," click here to order "Real Money: Sane Investing in an Insane World," click here to get "You Got Screwed!" and click here for Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he appreciates your feedback and invites you to send comments by clicking here.

TheStreet.com has a revenue-sharing relationship with Amazon.com under which it receives a portion of the revenue from Amazon.com purchases by customers directed there from TheStreet.com.