Stop Trading!: Stickin' with Sears
General Motors will one day be a non-unionized automaker, Cramer predicted on Tuesday’s Stop Trading!. He thinks the bad news is behind GM and the stock could go all the way to $50. Cramer advised more conservative investors to stick with the preferred stock, which carries less risk.
He also agreed that a short position in bond insurers MBIA and Ambac makes sense on the heels of Warren Buffett’s offer to reinsure municipal bonds for up to $800 billion. He called the move “really bad” for the insurers.
And in the face of continued criticism over Sears Holdings and Chairman Eddie Lampert, Cramer dug his heels in and said he’s sticking with SHLD for the long haul. Sears is a housing stock in a housing recession but Cramer still believes its fundamentals and management are still sound and the stock will be well positioned when the worst is over. “In Eddie I trust,” he said.
Jim's charitable trust owns Sears Holdings.
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