Jim Cramer Discusses These 11 Stocks & Says There’ll Be A “Good Reason To Buy Stocks” Soon

7. General Motors Company (NYSE:GM)

Number of Hedge Fund Holders In Q4 2024: 68

Given that the theme of Cramer’s show was President Trump’s tariffs on Canada and Mexico, it’s unsurprising that he spent quite a bit of time discussing General Motors Company (NYSE:GM). He has praised the firm’s CEO, Mary Barra, in his previous comments and was extremely pessimistic about the stock this time around. Given General Motors Company (NYSE:GM)’s manufacturing footprint, Cramer believes there aren’t many scenarios in which the stock can do well if the trade war between the US and its neighbors escalates. Here’s what he said about General Motors Company (NYSE:GM):

“Like the President keeps saying, look there’s going to be some people who suffer. Well I figured who they are. They are the [inaudible] GM shareholders. They get to suffer. I always think . . I always say, why should PE 5? Well holy cow! Because it’s not four!”

“[On whether reciprocal tariffs will change anything] It doesn’t matter whatever they are that it’s gonna raise the price of Ford and GM versus Toyota and versus Kia.”

“We are really being cavalier if you think these companies can radically switch anything within a five year period. In the same way that Taiwan Semi, maybe the greatest manufacturer on Earth, can’t seem to get those big foundries going in our country. So I just think there’s an un. . .I don’t wanna be unreal to our viewers who might actually be buying GM a couple of. . .this morning, people are buying GM up two bucks.”

“And I just think you have to recognize, you can’t own Ford and GM in this environment. Because they have to lose. It’s okay. They have to either cut their margins, cut their price and get hammered. And that’s why the stocks are, four times, five times earnings. Or they lose shares to Kia, and to Toyota.”

“Right, well now I know why Ford’s, why GM sells at five, I’ve been trying to figure out why does GM sell at five times earnings. Despite that big buyback and all the great things. Why does Ford, which is really done a lot of things under Farley, selling at five times earnings. And the answer is, and it’s what finally told us, is cause they’re screwed. That someone has to be sacrificed. It’s okay.”

“I can tell you that someone has to be sacrificed. And it’s the margins of Ford and GM and the shareholders. Until . . .we realize that Canada wasn’t cheap and we’re cheaper. It was also a way to get away from the unions. I mean, I think we, look, I was a shop steward. I worked and led a wild cat strike. Fired immediately. Not so great.”