Cramer's 'Mad Money' Recap: Ford Ready to Purr

Click here for an archive of Cramer's "Mad Money" recaps.

---

"Tonight we mourn the dissolution of capitalized labor," Jim Cramer told viewers of his "Mad Money" TV show Monday.

General Motors (GM - Cramer's Take - Stockpickr) has tentatively reached an agreement with the United Auto Workers union in favor of GM, and now Cramer believes the union has been weakened.

The next big money, he said, should be made in Ford (F - Cramer's Take - Stockpickr), which is next to negotiate with the UAW. Cramer wants people to get into Ford ahead of its meeting with the union because he believes CEO Alan Mulally will turn those negotiations into money for shareholders.

While Cramer called GM the better company, he believes Ford is the better stock because it's "depressed." With the GM blueprint, he said it should be easy for Ford to win the UAW agreement. Further, Cramer expects after the deal that there will be "massively lower" health care costs at Ford.

Also, Ford is in a better cash position with better expected cash flows than GM, he said. Ford is ready to climb out of its range and go higher, Cramer said. It is a stock to consider getting into.

Organized labor at the industrial level has been in bad shape and is now getting worse, Cramer told viewers. Another pin-action play off the GM deal that Cramer believes should break out of its range and go higher is American Axle (AXL - Cramer's Take - Stockpickr).