Cramer: Trading General Motors

General Motors Chairman and CEO Rick Wagoner has said his struggling company has plenty of liquidity. But the way Cramer sees it, that liquidity would come at a cost.

The CEO’s only option is to cut GM’s dividend, Cramer said, "and then bury your common stock with preferred."

Erin Burnett suggested a merger of GM with Ford or Chrysler as a possibility since such a move would streamline the companies and there’d be no anti-trust concerns from Washington.

Cramer urged investors looking for a play here to remember that “the issue again is the common stock," he said. "That's not the right instrument to be able to be involved in these."

"If I were in my hedge fund business, I would be selling the common stock, or at least trying to set it up for when the preferred piece is issued,” Cramer continued. “Maybe if I really like GM, buy that then."

Lastly, Cramer reiterated his call on Research in Motion despite the stock’s tumble following 1Q earnings Thursday.

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