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As I've mused a few times before, analyst and former hedge fund guru Jim Cramer is most useful as a picker for short-timers looking to make a quick buck in the market. This may not be Cramer's goal (perhaps it is?), but my belief is that he indirectly creates small market carvings with his recommendations on certain equities to hold.For those that sacrifice trading and sales commissions for short-term gains, his show Mad Money probably does good things for you (although some comments to this post were likening Cramer to a modern-day version of P.T. Barnum for his television antics).
But how can you ignore Cramer? With American automaker General Motors Corporation (NYSE:GM) being in the hotseat for fiscal quarters filled with billions in losses, intense competitive pressure from Asian automakers like Toyota and even GM's rumored large demands of Nissan CEO Carlos Ghosn that made a potential GM-Nissan partnership fall apart, there are opinions aplenty on what GM's next move is. Many are calling for GM CEO Rick Wagoner's resignation (read: head on a platter) among other things.
Although large GM shareholder Kirk Kerkorian is not cashing out of GM -- and he could make a pretty penny by doing it -- former Chrysler and IBM ally Jerry York resigning from GM's board of directors may give Kerkorian more room to pressure GM to make drastic changes.
Cramer weighed in on the matter, saying that he'd pick CEO Wagoner to leave the company over board member York. Cramer says an earnings upside preannouncement may move the stock higher -- but he doubts that will happen. He's also sticking with his $40 price target for GM shares.
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Reader Comments (Page 1 of 1)
10-10-2006 @ 5:22PM
Tracy said...
Personally, I think Rick Wagener is doing a fine job in an industry that is dealing with an unfair trade policy!!! I believe Kirk Kevorkian has no interest in “saving GM”. The only concern he has is to increase the bottom line and if that means destroying a great American icon like GM he will do so. Why is it, this country has become so hell bent on bring down the middle class? With all of our jobs leaving this country will it someday look like Flint or Detroit, MI. Well, I have bad news for you Kirk, the money stays when you leave.
10-10-2006 @ 4:58PM
mike said...
I think Wagoneris doing afine job turning GM around! This is a monumental job given the union contracts,pension costs and medical benefit costs.I just took delivery of an 07 Buick Lucerne and it is a terrific car.As ood or better than any Totota or Lexus ive ever driven!!! Better riced than the Lexus,BMW,Audi,and Mercedes and every bit as comfortable,good appearance,handling,stereo system too!Its time for the American press to stop just printing the financial bad news and give GM credit for having some great quality products! Iam sold!!!
10-11-2006 @ 2:30PM
Lloyd Tatum said...
Wagoner has not even maintained the status quo, significant loss of impetus occured since the departure of Jack Smith from GM. Smith led the corporation back from the proverbial brink and left a clear outline of how to proceed, the measures needed were tough but needed to continue in regaining market North American market share. However, Wagoner and cadre chose to wander aimlessly down the murky path of "Branding" with the blind leading the blind with Ron Zarella leading the pack. No less than four needless "re-organizations" were inflicted on the GM body in less than ten years, with each costing tens of millions, all the while continuing to lose market share. The result of the on-going loss of effective management is GM is now a rudderless ship.