• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Technology

Is the Dream Over at Ford?

I don't want to believe the CEO will leave before the job is done.
By JIM CRAMER Nov 06, 2013 | 11:20 AM EST
Stocks quotes in this article: F, MSFT, Z, OPEN, TSLA, PXD, MHR

At least it's all clear now, how you could report a miraculous quarter with a real head of steam yet the stock goes down. I am talking about the reversal in fortunes with CEO Alan Mulally perhaps leaving Ford (F) before the job is done to go to Microsoft (MSFT).

I don't want to believe it. I want to believe that he's not leaving. Some of it is selfish; we own it for the Charitable Trust. But some of it is the glaring nature of the unfinished job, of the need to put Europe solidly in the black and truly establish Ford as the world's most profitable truck and car company.

But when I listened to what Nomura analyst Rick Sherlund said this morning about how Mulally will be running Microsoft by next month, I guess the dream's over.

That said, if Rick, the axe in Microsoft, is right, then you have to buy Mr. Softee if only because it has been so undermanaged and there are so many legacy assets that can be jettisoned that the numbers go higher immediately.

I have known Rick for ages; we started on the same day at Goldman Sachs. Because he got the underwriting for Goldman and has always had the ear of Microsoft, I know this is not idle chatter. Nor would his supposition that Bing and Xbox, two ridiculous underperformers, would be sold to someone who can monetize them a heck of a lot better than Microsoft has.

In the end, Microsoft remains a personal computer play and that means that it is still in secular decline. But that doesn't mean that Alan Mulally has nothing to work with. Microsoft is a cash machine and Alan's a terrific allocator of cash. He can be a peacemaker and a uniter. He can figure out what belongs and who belongs --and who doesn't.

That said, we now know why Ford's been acting so horribly, which has been such a bummer for those of us who like the stock. And we know that Microsoft has taken the first giddy step we have seen since the 1990s -- and, boy, is that saying something.

Yes, I hope Sherlund is wrong. Yes, I hope that Mulally says, "Look, I am not going anywhere until this stock's much higher." But I no longer believe the soft non-denials. Sherlund's just too far out on a limb for me to believe otherwise.

Random Musings: Yes, the Zillow (Z) quarter was for real because the return on investment for brokers is so tremendous that this company can coin money. The shorts are in trouble here, as they are with OpenTable (OPEN), another one that they chronically bet against. The shorts can't be all that unhappy, however, given the defensiveness and negativity of what's happening at Tesla (TSLA) today. That story will stay troubled until the moment the battery shortage is solved and then the cult status will be restored, and I expect to see the stock go higher.

And if you believe in the oil story, you must listen to Pioneer (PXD) and Magnum Hunter (MHR) tonight.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long F.

TAGS: Investing | U.S. Equity | Technology | Transportation

More from Technology

Want to Save Your Retirement Fund? Tune Out the Talking Heads

Jim Collins
Jun 30, 2022 3:14 PM EDT

The first half of this year has been ugly. But we could have seen what would happen to Netflix, Tesla and Meta...

Is Pinterest's CEO Change Good News? It Depends on How You Look at It

Eric Jhonsa
Jun 30, 2022 2:30 PM EDT

Plus, why a report about an Apple 5G modem setback sounds believable.

Barring a Major Recession, Some Chip Stocks Look Very Cheap Right Now

Eric Jhonsa
Jun 30, 2022 11:45 AM EDT

Many quality chip stocks now seem to be pricing in a massive downturn, rather than just a typical down-cycle.

Oracle Continues to Struggle to Make a Durable Low

Bruce Kamich
Jun 30, 2022 8:20 AM EDT

Let's review the charts and indicators.

Texas Instruments Isn't Painting a Pretty Technical Picture at Present

Bruce Kamich
Jun 30, 2022 7:43 AM EDT

The charts of the big chipmaker are sending largely bearish signals.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 07:59 PM EDT PAUL PRICE

    Very good quarterly numbers from Bassett Furniture (BSET)

    Bassett Furniture (BSET) blew right through analys...
  • 04:41 PM EDT PAUL PRICE

    First Half Results - Putrid Second Half Results - Likely to Be Much Better

    It's great that we're done with June. 2022 marked...
  • 04:51 PM EDT PAUL PRICE

    We Should Be in for Better Starting Soon

    Window dressing Thursday, the last day of the...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login