GE in focus.

Jim Cramer says struggling General Electric (GE) has been a "huge disappointment" since he bought the stock for his charitable trust, but says investors should give incoming CEO John Flannery a shot at turning things around.

"I like the set-up. I'm not abandoning [the stock]," Cramer said in an exclusive conference call with members of his Action Alerts PLUS club for investors.

Flannery, a career GE executive, is set to take the CEO's chair on Aug. 1 from Jeffrey Immelt, whose popularity with investors waned as GE shares moved sideways in recent years. Activist Nelson Peltz's firm Trian Fund Management took a stake in the firm in 2015 and pushed for improvements. Although Trian didn't explicitly demand Immelt's departure, GE announced plans earlier this year to cut $2 billion in costs.

"Can we give Flannery a chance?" Cramer asked. "One of the big problems was that the company was stale, and I think that they can do a lot [about that]. I think they can cut $2 billion. I think that Nelson Peltz's pressure from Trian is going to be very good."

GE's shares fell slightly to $26.79 by Friday's.

WATCHSorry Thomas Edison, It May Be Lights Out for GE's Consumer Lighting Division

Want to join in on Jim's monthly conference calls? Click here for a free 14-day trial subscription to Action Alerts PLUS and hear all of this month's call, plus get e-mails before Jim makes any trade and enjoy lots of other exclusive material.

More of What's Trending on TheStreet:

Visit here for the latest business headlines.

Employees of TheStreet are restricted from trading individual securities.