Jim Cramer answered viewers’ questions from social media outside the New York Stock Exchange Wednesday, and he came decked out to talk about the Ferrari (RACE) IPO. ‘If you got some on the deal you probably want to ring the register,’ said Cramer. ‘It’s a terrific gain.’ Cramer pointed out that Ferrari sells at 29 times earnings, and he thinks Ferrari’s majority owner, Fiat Chrysler (FCAU), is less expensive. Cramer thinks Fiat is the cheapest stock in the auto group. He added that GM (GM) just reported good numbers, but Fiat’s were better. Cramer also addressed a viewer’s question about why SanDisk (SNDK) was not trading at Western Digital’s (WDC) offer price. Western Digital agreed to acquire the company for nearly $19 billion. Cramer thinks there’s a sense that the deal might be blocked, and he also thinks it’s hard to value. He said SanDisk itself is not doing that well on its own, and the flash segment is under pressure, so he advises investors to be careful. Another viewer asked about Chipotle’s (CMG) disappointing earnings results. ‘I didn’t like the same store sales, I didn’t like the labor costs, I didn’t like the real estate, I didn’t like the beef costs,’ said Cramer. At the same time, he sees an opportunity to buy the stock and expects the company to go in and buy back shares. He cautioned investors should wait at least two weeks, allowing the price volatility to settle down. Write your questions to Jim Cramer on his Facebook page and on Twitter @JimCramer using #CramerQ.
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