is a perfect example of why market players need to stay on top of the news, especially if they are going to attempt to trade individual stocks on their own, Jim Cramer said on his
"RealMoney" radio show Friday.
GM just lost its catalyst and is now a "bad" stock, Cramer said. Jerry York resigned from GM's board after the automaker's failure to create a deal with
People believe that I should just get behind a stock and go on autopilot," Cramer said. "Buy and hold is what it's called, and it's wrong."
Cramer told listeners that he is not inconsistent, but since the facts have changed and York is no longer a part of GM's board, Cramer has changed his opinion on the stock.
Up until now Cramer said he was recommending GM on the cue that York, the person who is responsible for turning around
, was behind it.
"He's a cost cutter," Cramer said. "He's a visionary, and is a guy who sees places to make money."
Although there is still a possibility that GM could see an upside, "the odds just got longer," Cramer said. "The miracle is probably gone now."
The stock is "not as good as it was three hours ago," Cramer went on to say. "I'd sell some -- and might even sell it all. This is not what I wanted to see."
Semis Too Tough
, a big semiconductor company that makes random access memory and flash memory, "told a bad story last night," saying that things are not as good as it thought, Cramer said.
The company, which reported a bad quarter, "failed to deliver and got hammered," he said.
The same thing is going to happen to
, which is in the digital signal processing business, Cramer added.
"It is overvalued," as is
, he said. "Broadcom is going to miss its quarter."
Cramer said he doesn't understand why people would buy any stocks dealing with hardware products here when there are many other places to win. He advised people to stay away from the semiconductor group.
That being said, he said if he had to own one of these stocks it would be
Advanced Micro Devices
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