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Cramer reiterates enthusiasm for beleaguered GM

(Click for video linked to a searchable transcript of this Mad Money segment)

A month ago, Jim Cramer said GM stock was a buy. Today, he's saying it's a fantastic buy.

If you're a regular "Mad Money" viewer, you may remember that on May 5, Cramer recommended buying shares of General Motors into the teeth of the recall, despite the lawsuits and safety concerns.

At the time, he said the stock was "absurdly cheap."

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Now, Cramer knows that people have lost their lives because of GM's faulty ignitions and loss of life is something that can never be quantified. However, Cramer also says that, as an investor, it's important to view GM's stock through the lens of Wall Street.

And Cramer believes the latest results give pros every reason to buy a stock that's "absurdly cheap."

"This morning General Motors reported May sales that were way ahead of expectations. When you consider the relentless drumbeat of negative news about this company, the sales numbers are eye-popping," Cramer said.

Cramer noted that not only did 17 vehicles report double- digit sales increases, but year to date GM's average transaction price is up $2700 and inventories declined.

That says to Cramer, GM cars are not only attracting buyers, but the company is making money.

"Many pros were convinced sales would plummet due to the ignition issues," Cramer said. "But they failed to realize that GM has refreshed its product line." And at the end of the day attractive cars that are reliable sell.

Again, Cramer thinks the opportunity is significant.

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"The possibilities for even the biggest settlements involving the accidents should not phase you," Cramer said, referring to the company's strong cash position. Cramer thinks what matters much more is that General Motors has improved its product line and now sells cars, trucks and SUVs that people want to buy.

That's a big long-term bullish catalyst; one Cramer believes will drive General Motors for a long time to come.

"I believe the worst is over for this stock. It is time to buy General Motors."

On Tuesday June 4, Jim Cramer owned shares of GM on behalf of his charitable trust

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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