Jim Cramer Says General Mills “Could Be in the Government’s Crosshairs”

Cramer highlighted that General Mills, Inc. (NYSE:GIS) might face complications regarding its cereals if Robert Kennedy Jr. decides to ban artificial ingredients.

“General Mills, which makes top drawer pet food, let’s go over that one. Incredibly popular cereals, you know them, Trix, Lucky Charms, Fruity Cheerios. When you were a kid, was there anything more fun than eating these for breakfast? I mean, they’re practically addictive for children, even for adults. I had some last week, and that’s the problem. Bobby Kennedy Jr. wants to demagnetize these cereals as well as make many other products that have artificial coloring that kids can’t resist.

The question becomes, what if he gets his way? Will kids eat Lucky Charms without those colorful hearts and rainbows? Can you imagine if you took the color out of Trix? It wouldn’t be for kids. This stock’s one point off its low, 22 points away from its high, yields 4.5%. Hmm, 4.5%. Let’s think about this. General Mills now yields the same as the 10-year Treasury. If you’re nervous, if you fear Bobby Kennedy Jr, would you fear the 10-year? Nah.

But you know what? You might fear General Mills. So why buy a company that could be in the government’s crosshairs when you can get the equivalent yield from something that’s backed by the full faith and credit of the same government that might be coming after them? I am tempted to buy General Mills, but I do fear Bobby Kennedy Jr. more than I care about how much I might make with this stock.”

A worker in a production facility packaging arbitrary food products, reflecting the company’s commitment to comprehensive production standards.

General Mills (NYSE:GIS) makes and sells a wide range of branded packaged foods. Its products include cereals, snacks, frozen meals, meal kits, and pet food.

While we acknowledge the potential of GIS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than GIS and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: Jim Cramer Put These 8 Stocks Under a Microscope Recently and Jim Cramer Commented on These 6 Natural Gas Players

Disclosure: None.