Was Jim Cramer Right About These 13 Stocks?

11. General Motors Co. (NYSE:GM)

Number of Hedge Fund Holders: 68

Cramer saw short-term upside for General Motors (NYSE:GM), due to government policy changes at the time:

“The automakers were strong today because they got a break from the Department of Energy, which said they won’t face billions of dollars in fines if they keep making a lot of gas guzzlers. Good for Ford, good for GM, bad for the polar bears.”

General Motors (NYSE:GM) has been doing well over the past year, having risen by 11.79%.

According to Cramer’s most recent comments on the 11^th of March, he believes that the auto industry is in trouble, as tariffs on Canadian aluminum and steel are set to raise manufacturing costs dramatically. He warned that General Motors (NYSE:GM) and Ford (NYSE:F) could see their margins squeezed, saying:

“A 50% tariff on Canadian aluminum doesn’t work because there’s no new source to replace it. Wherever we get aluminum, it’s going to be a lot more expensive, raising the price of cars and trucks dramatically, really hurting GM’s profits; Ford’s too. I don’t think it’s a mistake to say that the auto companies are in real trouble with a 50% tariff on Canadian steel and aluminum. You certainly can’t own their stocks.”