Cramer: Ford CEO Mulally Is My Hero
has set its sights on a lofty sales goal –to grow 50 percentin just four years. So why isn’t the stock shooting higher? Cramer thinks it’s because people don’t believe CEO Alan Mulally.
“He’s making projections that seem to be almost too good to be true,” the "Mad Money" host said Tuesday. While material prices are increasing, Mulally's projects indicate material prices would be decreasing. And while large trucks are where the money is, he's talking about small car profitability.
“You can’t get a jump up when people are in disbelief,” Cramer added.
However, Cramer is not one of those doubters because the sales growth is expected in India and China.
He also believes people who judge Mulally on the last two quarters are being unfair.
“We’re talking about a company that was left for dead. Why didn’t it die? Because of this man and the great team.”
Cramer called Mulally “my hero” and pointed out that the CEO had the foresight to borrow money in 2006, which supported its turnaround. Ford was the only major U.S. automaker to avoid bankruptcy and a government bailout.
In other market news, Cramer said that despite the troubles facing Northern Oil and Gas, the Bakken formation group is not a bubble.
Cramer was once bullish on NOG but has since backed off. He said plays like Whiting Petroleum and Continental Resources are terrific, and believes EOG Resources may the fastest growing oil company in the world.
“The Bakken lives,” he said, “just not through NOG.”
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