Cramer's Stop Trading! Ford's Best Quarter (10/25/10)

Includes: C, F, LMT, LYB, PEG
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV segment, Monday October 25.

Ford (NYSE:F), Citigroup (NYSE:C), LyondellBasell (NYSE:LYB), Lockheed Martin (NYSE:LMT)

Ford is poised to report the best quarter in its history. The earnings beat will create a "virtuous cycle" as the company will have a better credit rating, which will reduce borrowing costs which in turn will mean lower costs for customers and more sales. Cramer set the price target for Ford at $17.

Cramer applauded Goldman Sachs' move of adding Citigroup (C) to its conviction buy list, and the company will see an upside once the government will stop selling the stock. Military companies like Lockheed Martin (LMT) which depend on defense spending might not perform so well.

While he likes the chemical sector in general, Cramer particularly likes LyondellBasell (LYB) because of its declining raw costs. He thinks the company could rise as much as 15 points.


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