Cramer on Top-Searched Stocks: GM

In the recent post below, Cramer points out that he is not a huge fan of this group:

"If you want to know why GM and Ford may not make it -- and I sincerely doubt Chrysler's any better, despite the endless puffing by CEO Bob Nardelli -- go listen to the CarMax(KMX Quote) call. This call was devastating. There has been the greatest deterioration in values and demand for SUVs and pickups in the history of these incredibly lucrative lines. It is a nightmare for anyone making these vehicles, and GM and Ford are the companies for this stuff.

I know that we are a profligate nation, but we are not entirely stupid about oil and gas and the tradeoffs, and the fuel efficiency tradeoff is so powerful that these vehicles simply don't have any demand.

So despite endless restructurings and countless layoffs, in the end the American automobiles have the wrong cars and trucks. They simply don't have the product that has value or keeps value.

It is time to think the radical thought, again, that GM and Ford have too much debt and may pay to simply file for a prepackaged bankruptcy to become radically smaller companies making cars and trucks at a rapidly diminished rate.

I didn't feel this way before the CarMax call. I just figured that it paid for GM to cancel the dividend. But the sheer cliff that these vehicles have fallen off is too steep to come back again.

There was a strain of hope throughout the call that it is just temporary, that it could be like Katrina -- mentioned many times -- where there was a drop-off in demand. But that's cyclical and this is secular because of the skipping of the $3 gasoline and the rapid rise to $4.

It is still not too late to sell Ford and GM, and I sure wish that Cerberus would be more upfront about what's really going on at Chrysler, but then again that's one of the sheer joys of being private."

For the rest of Cramer's take on yesterday's top-searched stocks, check out Cramer's Take on Top 10 Most-Searched Stocks From June 19.