Cramer's Stop Trading! Tax the Gas Guzzlers (11/11/10)

Includes: DRI, F, GM, PNRA
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Thursday November 11.

Ford (NYSE:F), Panera Bread (NASDAQ:PNRA), Darden Restaurants (NYSE:DRI), GM

While many worry about talk of raising taxes on gas, Cramer thinks the price of gas does not accurately reflect the effect of the substance on society, and would tax autos that do not have efficient miles per gallon. Ford (F) is increasingly producing fuel efficient cars, and the tax would encourage car companies to keep improving energy efficient autos. Cramer said such a tax would be a "minor, easily digestible way to raise money from gas."

One sector that might be impacted by the tax is the restaurant space. Speaking of restaurants, Cramer discussed Darden (DRI) and Panera's (PNRA) good quarters that were not well liked by the street. Their stocks rose in spite of the lack of fanfare."You know it's a great market when you see stocks rise for no reason whatsoever."

Cramer thinks GM's IPO is going to be a success and is an example of something the government did right. Concerning copper, Cramer says the industrial metal is not in a bubble since there is ever-rising demand and dwindling supply. Gold is also not in a bubble, and Cramer thinks the yellow metal will rise to $2,000. He noted that in the last nine years gold is up 17% while stocks have risen less than one percent.


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