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GM CEO: Emerging Markets Encouraging for 2007

This West Chester, Ohio-based steel company struggled in the first half of the year, posting a 37% decline year-to-date. Cramer didn't like this stock at first because it's not a vertically-integrated steel maker, meaning it doesn't have its own mines and needs to buy its primary raw materials. In other words, AK Steel's operating costs were very high.But Cramer thinks this stock could be poised for a turnaround, as those costs have since plummeted. He also likes the company's management, who reduced the employee headcount by 30% while maintaining the same production capacity. At the same time, the company has used more than $2 billion of internally generated cash to shore up its balance sheet. It has also managed to muddle through the recession without selling equity, issuing debt or cutting its small dividend, which has a 1.4% yield.
AK Steel Holdings
This West Chester, Ohio-based steel company struggled in the first half of the year, posting a 37% decline year-to-date. Cramer didn't like this stock at first because it's not a vertically-integrated steel maker, meaning it doesn't have its own mines and needs to buy its primary raw materials. In other words, AK Steel's operating costs were very high.But Cramer thinks this stock could be poised for a turnaround, as those costs have since plummeted. He also likes the company's management, who reduced the employee headcount by 30% while maintaining the same production capacity. At the same time, the company has used more than $2 billion of internally generated cash to shore up its balance sheet. It has also managed to muddle through the recession without selling equity, issuing debt or cutting its small dividend, which has a 1.4% yield.

General Motors CEO Rick Wagoner told CNBC's "Worldwide Exchange" he predicts robust global sales growth in 2007, crediting the positive outlook to a strong product pipeline and solid performance in the emerging markets.

But Wagoner declined to comment on speculation GM might purchase Chrysler from Germany's DaimlerChrysler.

“We’ve been working hard on getting a broader range of products that really gets people excited,” Wagoner said at the Geneva Motor Show, noting GM’s new full-size pick-ups and mid-sized cars as leading products.

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“We’ve got a great global footprint,” he said. “If you look at China alone, last year we sold 875,000 units in our joint ventures… which is really remarkable when you consider ten years ago I suspect we weren’t even selling 10,000 units.”

In addition, Russia demand is growing, Wagoner said. But he added that the company is doing all it can to build on its established positions in Europe and the U.S., saying the Detroit-based automaker will "fight for every sale."

Wagoner said later at a press conference that GM’s global industry sales are headed to 70 million vehicles for the full year.