NEW YORK (TheStreet) -- Ford (F) could have gone bankrupt like General Motors (GM) and Chrysler. However, according to TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, Ford's CEO Alan Mulally was the difference maker.
Instead of going bankrupt like its Detroit counterparts, Ford was able to hang tough because Mulally "had the foresight to raise a lot of money before the recession hit," Cramer explained. For this reason, Mulally is one of Cramer's "Bankable 21." GM is an AAP holding.
However, Ford's stock has stalled as investors wonder if the CEO can "clean up" the European operations within his one-year, self-imposed deadline.
"I think he can do it," Cramer said. He reminded investors how much shares of Microsoft (MSFT) used to shoot up on rumors that Mulally would be the next CEO.He concluded that Mulally was able to steer Ford clear of bankruptcy, turn its operations around and "now he's going to turn it into the global powerhouse that it used to be."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV