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
The research analysts at the brokerage firms have decided that they don't want market players to own retail stocks anymore, but this is incorrect, said Cramer.
These analysts believe the retailers "have gone up way too much, way too fast," and that now it's time to lighten up on them. But these analysts are wrong, and the retail stocks are still cheap, especially when compared with stocks such as
, Cramer said.
"I believe you'll make money if you hold onto the retailers," he said, adding that
are still good and worth owning.
Cramer said he believes retail continues to be a good place to be because discretionary spending is higher than it used to be.
has seen a "tremendous acceleration of spending at Olive Garden and Red Lobster," he added, rationalizing that these restaurants would not be doing well if "people felt poor."
"When these places do well, it shows me that the economy is better than expected and that the consumer is alive," Cramer said.
It's wrong when people sell stocks that break out of their ranges after being stuck in the mud for a while, he went on to say. When a stock breaks out, that's when it starts "galloping."
This is what's happening with the retailers, Cramer said. People should not take money off the table right now, he stressed, because retailers "are still going higher."
, although "a very good company," is not as good as
, said Cramer.
He said he believes that Morgan Stanley is a buy, but that Goldman, which Cramer owns for his charitable trust,
Action Alerts PLUS, is a triple buy.
Responding to his next caller, Cramer said
could go to $500 "pretty quickly" if it buys YouTube. Google was recently trading at $420.43.
It would be "a huge positive if Google gets it," he said.
In addition, Cramer told another caller that
is headed higher.
When a listener inquired about
, Cramer called it an "up stock" that doesn't know when to quit.
However, because the stock is up a great deal since its IPO last spring, he advised the caller to sell half his position and let the rest run.
is a good company, Cramer told his next caller.
The company's CEO Stephen Bollenbach has done well for the company by bringing back Hilton's international business, he said, advising the caller to hold on to it.
At the time of publication, Cramer was long Goldman Sachs.
Jim 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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