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Stop Trading!: Cramer on Kerkorian

Kirk Kerkorian’s sale of 7 million Ford shares Monday, and the impending sale of the rest of the billionaire’s position in the automaker, is a defensive move intended to reprioritize another struggling company in which Kerkorian has a large stake, MGM Mirage, Cramer said during Tuesday’s Stop Trading!.

Kerkorian’s investment arm Tracinda Corp. stated Tuesday that it was cashing in its Ford shares to focus on other sectors, such as gaming. Tracinda owns a 54% stake in MGM Mirage , and Cramer thinks the money raised from the Ford sale should at least in part go toward strengthening his position in the casino company.

“I think he’s just protecting himself,” Cramer said.

The Mad Money host thinks Kerkorian doesn’t want his Ford holdings to contaminate his MGM position, especially as MGM, too, is having trouble. Just Monday, the company said it would not pay out annual bonuses because it wouldn’t meet profit forecasts for the year.

Cramer also made calls on Freeport-McMoRan and Coach. Watch the video for those.







Jim’s charitable trust owns Freeport-McMoRan.

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