Stop Trading!: GM Revs Up
General Motors’ settlement with the United Auto Workers union sent that company’s shares up about 5% Wednesday afternoon. On Stop Trading!, Cramer called the deal an “unbelievable beat down of the union.”
All of GM’s biggest costs, namely its healthcare obligations, are off the balance sheet, Cramer said, adding, “This was a giant win for GM.”
Cramer recommended GM at $29, and the stock was at about $37 with under an hour left in Wednesday trading. Cramer said he thinks it could climb another three points or more by the end of October.
Monsanto may be selling at two times its growth rate, but that’s not expensive for “a biotech company that’s going to solve our energy crisis,” Cramer said. He recommended waiting until Friday before buying a position in MON because institutional investors had pushed up the price on Wednesday.
Aside of Cramer’s Four Horsemen of Tech – Apple, Research in Motion, Google and Amazon.com – SanDisk and NVIDIA have the most near-term momentum, he said. Demand for NVIDIA’s graphics-processor technologies, which are often used in videogames, should make the stock a “smash hit right into Christmas.”
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