Investing

Return to Article

RealMoney Radio: Turn Around, Look at GM

TheStreet.com Staff

General Motors (GM Quote - Cramer on GM - Stock Picks) is "powering" the Dow, Jim Cramer said on his "RealMoney" radio show Tuesday.

Jerry York is working for GM and turning it around, Cramer said. Although Kirk Kerkorian's Tracinda, which owns a major investment in GM, is arguing that the turn at GM is short term, management is saying the turn is long term. But what matters is that there's a turn either way, he said.

This company was at a point where six months ago people thought it was going bankrupt, but not anymore, Cramer said. It has had a "remarkable run, and it's not done leading the Dow even higher."

"GM's near-term earnings will be better than expected, and that's what propels stocks higher," he said.

Although the stories in the media today may try to shake market players out of GM, Cramer believes that people should not listen to these stories and instead should "get in the stock that is powering the Dow higher."

In addition, financials, technology stocks and retailers are all going up, he said.

"This is what a good rally looks like, and we're not done," Cramer said, adding that the oils will also have their day, but not yet.

Oil is coming down as are all commodity sales, he said. Gold is "plummeting," and aluminum is "cratering," as is oil.

"The amazing thing is that it doesn't matter what you do if you produce a commodity." Cramer said. "These stocks are all trading the same way regardless of the company."

Devon Energy (DVN Quote - Cramer on DVN - Stock Picks), a stock Cramer owns for his charitable trust, Action Alerts PLUS, announced that it's doubling its reserves, and the stock is still down.

Phelps Dodge(PD Quote - Cramer on PD - Stock Picks) is cheap here, but no one cares, even though copper is not in short supply, Cramer said.

Freeport-McMoRan (FCX Quote - Cramer on FCX - Stock Picks) is another stock down "hideously," said Cramer, who believes that Freeport will go all the way back to $43. The stock was recently trading at $50.50.

"This is the whole sale destruction of commodities," Cramer said. "But somewhere in here there is opportunity and a chance to buy."

Devon is a company that will get a bid, Cramer said, adding that he would be a buyer of Devon and a seller of BP (BP Quote - Cramer on BP - Stock Picks).

Meanwhile in the tech world, though some companies are doing well and some are doing badly, the stocks are moving up, he said.

However, Cramer, who believes that not everything tech should be going up, says that the best area in technology is the gadget space.

Apple (AAPL Quote - Cramer on AAPL - Stock Picks) could go higher, he said. And Motorola and Cisco (CSCO Quote - Cramer on CSCO - Stock Picks) are also cheap stocks and should keep going up.

To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.