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GM IPO Coming—Buy Ford Instead?

General Motors may be holding a much-anticipated public offering, Cramer told viewers Wednesday, but a different automaker is the better buy.

Given Ford’s growing stable of every-popular cars, its increasing market share and its steadily improving balance sheet, Cramer thinks this stock should be worth more than GM. Ford has even paid off its legacy workers, which is a cash drain with which General Motors is still contending.

Bottom line? Ford has turned around and is on the upswing. GM, meanwhile, is still pulling itself together and trying to repair its damaged brand. So buy Ford shares instead.

You should get a good chance to do so when GM hits the open market. The initial talk about General Motors puts its market cap at about the same level as Ford, but Cramer thinks GM’s stock will “jump up big” at the opening, making Ford’s shares all the more attractive.

“That means Ford will be the stock to buy as we get closer to this deal, because, frankly, at $15 it’s just not in synch with what the not-so-good company is going to be trading for.”

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