This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer Quick Take: Ford Is the Best

NEW YORK ( TheStreet) -- With the two big U.S. automakers reporting earnings this week, is there still value to be found? TheStreet's Jim Cramer and Debra Borchardt discussed Ford Motor (F - Get Report) and General Motors (GM).

Both companies beat on top- and bottom-line estimates. Cramer said he was surprised by GM's results.

However, he still prefers shares of Ford, a holding in his charitable trust, Action Alerts Plus, to GM, in part because the U.S. government still holds a stake in GM. Although the company has said it won't do a large secondary offering, Cramer's still a bit leery.

Ford has been on a tear this year and that might not stop anytime soon. With analyst expectations still remaining relatively low, the stock could trade through $18, he said.

That level will likely be met with some investor skepticism, however, seeing as Ford traded up to $18 in 2011 before settling below $10 per share.

But Cramer said things are different this time around and Ford is much better off than it was two years ago, when investors thought Europe would be fine, causing estimates to be too high.

In general, he said, he remains bullish on the auto sector. If sales continue to impress, these stocks are going to remain value plays, with increasing dividends and strong buyback programs.

While Cramer said he expects GM to start offering a dividend, he likes how quickly the cash balance is growing at Ford and believes Ford's dividend will be raised soon.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
F $11.30 -2.50%
AAPL $94.58 -0.45%
FB $98.45 -1.30%
GOOG $674.24 -1.20%
TSLA $146.76 -0.83%


Chart of I:DJI
DOW 15,931.07 -95.98 -0.60%
S&P 500 1,835.95 -17.49 -0.94%
NASDAQ 4,229.8270 -53.9260 -1.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs