Was Jim Cramer Right About These 13 Stocks?

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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 11th 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.”

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