"Given all of

General Motor's

(GM) - Get Report

problems and the way they're going about fixing them ... I believe the stock will be at $40 next year, Jim Cramer told "RealMoney" radio listeners Wednesday.

Cramer said that the company should be able to reinvent itself from a large company that loses money into a small company that makes a ton of cash.

Cramer emphasized that he has been a long-time hater of the stock, despite the fact that it is one of the largest sponsors of his television show "Mad Money," which airs on

CNBC

.

But now he believes that management is addressing the company's problems and taking action, so Cramer likes it here near $23.

However, he said, GM is a stock to buy for a trade, meaning that it could be held for about three months.

Toyota

(TM) - Get Report

is still his favorite auto company, and Cramer added that it just reported a great quarter.

He recommended Toyota at $70, and now it's above $120. Toyota is the better investment, Cramer said, adding that it could still go up substantially over the next six months.

We like to apply the Goldilocks rule in business, Cramer said, referring to the notion that it's good when things are not too hot and not too cold. We especially like this when it comes to employee compensation, he said.

For example,

Cisco

(CSCO) - Get Report

reported what looked like a great quarter, but Cramer said that when he drilled down, he was worried about the amount of options being issued to employees.

Sales were up 5% for routers and 13% for switches, but Cisco's compensation expenses were way too high, Cramer said, adding that these options prevented the company from rallying.

An argument could me made that all of the tech stocks have a problem with aggressive, excessive compensation to employees, Cramer said.

He said that there is one thing that

Oracle

(ORCL) - Get Report

,

Intel

(INTC) - Get Report

,

Microsoft

(MSFT) - Get Report

,

EMC

(EMC)

,

Sun Microsystems

(SUNW) - Get Report

and

Dell

(DELL) - Get Report

all have in common. They have problems with compensation and they all don't go up.

Cramer owns Microsoft for his charitable trust

Action Alerts PLUS.

He said that compensation is a good reason to rethink one's tech exposure, adding that better "neighborhoods" to be in are minerals, oil, aerospace and infrastructure. They don't issue a lot of options and they're doing better, said Cramer.

To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.

At the time of publication, Cramer was long Microsoft.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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