Economy Blog

Cramer recommended auto parts maker Visteon (VC) for a speculative turnaround idea. Visteon was spun off from Ford Motor (F) in 2000 and it hasn’t turned a profit since. Cramer said this could soon change. He explained that Visteon is under-going a huge restructuring initiative by trimming overhead and boosting numbers. Recently, the company reported a $51 million profit, vs. Wall Street estimates of a $40 million loss. C…
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Cramer recommended auto parts maker Visteon (VC) for a speculative turnaround idea. Visteon was spun off from Ford Motor (F) in 2000 and it hasn’t turned a profit since. Cramer said this could soon change. He explained that Visteon is under-going a huge restructuring initiative by trimming overhead and boosting numbers. Recently, the company reported a $51 million profit, vs. Wall Street estimates of a $40 million loss. Cramer thinks investors should buy the stock now since not a single analyst upgraded the stock after it reported its quarterly profit. He said investors could catch a nice move in the shares once the analysts start truing bullish on the name. The company sold 23 unprofitable plants and eliminated 18,000 high pay union workers. Cramer explained that the company is diversify its sales, relying less on Ford and now selling to General Motors (GM), Nissan and Hyundai.
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