Get Even More Bullish on the Dow, Part 2

ExxonMobil Fund darling

ExxonMobil(XOM) has become the mutual funds' favorite play, even though so many other oils are so much cheaper, including Chevron(CVX) and ConocoPhillips(COP). Still the multiple's only 12, with 9% earnings growth baked in at these oil prices, so let's say the stock adds on another 5 points. I know, disappointing, but what a run! Eighty's about all it can muster in 2007, though, without oil going through $70, and I don't see that happening.

GE Watch the dividend

General Electric(GE): This one finally got legs when it decided to boost the dividend much more than it has for the past five years, 12% vs. 9%. I believe this is just the beginning of the big boosts, and that the company can take its yield to 4% without much problem, particularly when it unloads plastics, gets the benefit of all the Zucker-led changes at NBC and quits the inanely large buyback that did nothing for shareholders. Still, the stock's not cheap: I'd take GE to $43 and then declare victory.

GM Going nowhere

General Motors(GM): GM had its chance. It had the single greatest turnaround manager in the world on its board, Jerry York, and it spurned him and Tracinda. That said it all. This stock was headed to $40 with the man who turned around Chrysler and IBM on board. Now it is going nowhere, nowhere at all. I believe this stock will close at this level, give or take a handful of points, next year at this time.

Editor's note: This is Part 2 of Jim Cramer's review of the prospects for the stocks that make up the Dow 30. Be sure to read Part 1, Part 3 and Part 4.

>To order reprints of this article, click here: Reprints