On Thursday, Action Alerts PLUS put out an announcement that it bought 200 more shares of Starwood Hotels (HOT) and sold 500 shares of its position in General Motors (GM). Jim Cramer, portfolio manager at Action Alerts PLUS, spoke with Brittany Umar on the reasoning behind the latest move. Despite the rumors of a General Motors merger with Fiat Chrysler, Cramer is not impressed with the how General Motor’s stock is doing. Cramer says that one of the ways to measure a CEO’s performance is to see how the stock is doing. Despite Mary Barra’s opinion that the company is doing well, Cramer would have to disagree given that GM’s stock ‘ain’t doin’ jack,’ as Cramer puts it. On the other hand, Cramer predicts that Adam Aron, the current CEO at Starwood Hotels, will be going to do something major with the hotel company even though Aron is only acting as the company’s temporary CEO. Adam Aron is one of the bigger reasons why Cramer wants to own Starwood Hotels. Cramer thinks that shares of Starwood Hotels could be up ten points from where Action Alerts PLUS bought it at as the Stamford-based hotel company attempts to become the next Marriot, which has done extraordinary things for wealth creation. Cramer assures viewers that he and his analysts at Action Alerts PLUS are not against seeing one of their stocks go down because the drop in price only provides the opportunity to buy more of the stock and increase their position with the company.
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