It’s time to buy General Motors Company (NYSE:GM), suggested Mad Money host Jim Cramer during his program.
“Guess who had the best may in 7 years?” Cramer asked at the start of his analysis. “That’s right. This morning, General Motors reported May sales that were way ahead of Wall Street’s expectations, up 12.6%, retail sales increasing by 9.7%. When you consider the relentless drumbeat of negative news about General Motors Company (NYSE:GM), with millions upon millions of cars being recalled, these sales numbers are both eye-popping and eye-numbing.”
According to Cramer, all four brands of General Motors Company (NYSE:GM) performed well, with 17 vehicles showing double digit retail sales. He added that Chevy total sales jumped 14.2% and Buick sales jumped 11%. He also noted that Cadillac and GMC recorded the strongest total sales since 2007.
The Mad Money host then went on to say that despite the millions of recalled cars and the tragic fatalities caused by faulty ignition switches, the company didn’t have to put a lot of money in promotions. General Motors Company (NYSE:GM) also does not have a lot of unsold units and its transaction prices has increased.
Noting that the numbers he discussed are for North America, Cramer stressed that the company is also performing well in other regions. While there has been a lot of bad press for the company, Cramer said that this does not necessarily mean that the car manufacturer has bad fundamentals. He added that what those people who have been negative about General Motors Company (NYSE:GM) missed was that GM has spent a lot refreshing the product line and that the the company cut a lot of their cost that they could afford to take the hit and even enormous settlement stemming from the accidents.
The bottom line, Cramer continued, is that he himself has underestimated the numbers he expected the company to put up during the last quarter. He added that people should ready themselves for analyst upgrades.
“[This] is why I am telling you right now, it is time, it is still time, to buy General Motors.”
Watch the video below.
Natixis Global Asset Management’s Harris Associates has 63.5 million shares in General Motors Company (NYSE:GM) valued at about $2.19 billion as of the end of March. Warren Buffett’s Berkshire Hathaway also holds 30 million shares in the company with a valuation of $1.03 billion. Another investor in the car maker is Taconic Capital managed by Frank Brosens which has a stake that is 13.23 million shares.