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Cramer: "For GM, This Time Could Be Different"

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Cramer: "For GM, This Time Could Be Different"

por Ulisses Pereira » 25/10/2006 13:30

Reacção do Cramer aos números fabulosos apresentados há pouco pela General Motors.

"For GM, This Time Could Be Different"

By Jim Cramer
RealMoney.com Columnist
10/25/2006 7:39 AM EDT


"GM's (GM - commentary - Cramer's Take - Rating) remarkable. Its costs were so high that even though it is shrinking the company dramatically, it now has a multiple again, and the multiple is way too low vs. the newfound earnings power.

I have been saying that $40 is my target. I didn't think it could get there this fast and without the support of virtually everyone on Wall Street. The fact that Jerry York is not there will make it so the earnings will not receive a premium multiple, or even half the market multiple, but you could argue $60 is coming.

I suggested scaling out of some GM yesterday because of my double rule -- meaning that if you don't take something off after you have doubled, you are a hog in a world where bulls make money, bears make money, and hogs get slaughtered.

But even I, a lonely GM bull, am impressed by these numbers. How much fat was there? More than anyone ever knew.

And Ford (F - commentary - Cramer's Take - Rating), which is up nicely after reporting that big loss, will do the same thing.

There have been periodic restructurings/layoffs at these places. Who can forget the billions in losses over the 1990-1991 GM restructuring? This one is the most impressive yet. Maybe, at last, this time it is different. (I know the consequences of saying that, but not even GM can layer back on that number of workers.) "

(in www.realmoney.com)
"Acreditar é possuir antes de ter..."

Ulisses Pereira

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