Cramer's Mailbag: Apple's Fall Is Misleading

Editor's note: Jim Cramer answers questions below.

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Big Boo-yah! Your radio program was a light in the dark, and earned me a good bit of money.

Hate to ask you, but is Apple (AAPL Quote) as strong as it was? It has fallen five to six points from earlier highs. Should I reconsider my position in Apple?

Missing your program. Can you do a radio-style program on the Web?

-- Phil

Jim Cramer: Thank you for the kind words. I'm still working on creating a new podcast for TheStreet.com.

Anyone who tells you that the Apple story is over doesn't know the company that well. They'll have a record slate of new products each year, and the replacement cycle for iPods will remain robust. I'd look to pick away at Apple on any further pullback.

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On Northern Orion (NTO Quote): What is the problem with this stock? The company continually sets earnings records, and they have a long-term interest in the land they dig. Gold is holding and copper goes up and down, but the demand for both is high!

-- Dave

Jim Cramer: I believe this is just too speculative of a metals play. The company has a lot of inherent geopolitical and operating risks, and I'd rather focus on a more established firm. For the copper side, I still like Freeport McMoran (FCX Quote), which is trying to merge with Phelps Dodge (PD Quote). For gold, I still like Yamana Gold(AUY Quote).

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You often discuss "Am I Diversified"; however, you never offer your opinion as to where a cash position sits within the overall structure of a portfolio -- i.e., in a market such as the current one, how much dry powder should be on reserve, or should all cash be fully deployed?

-- Steve

Jim Cramer: This depends on each individual situation. As bullish as I am on the market right now, I don't want to have more than a 10% cash position in my charitable trust. In general, I believe there's always a bull market somewhere, and as long as interest rates are not in the double digits, your money will earn a better return in stocks or real estate than in cash.

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With the suggestion to get into Walter Industries(WLT Quote) this week on "Mad Money" and the spinoff of the Mueller Water Products (MWA Quote), is it a good idea to grab a piece of Walter now that it's down some 45% or so? How should one play this position?

-- Matt

Jim Cramer: The stock has already bounced from $40 to $50 but remains very inexpensive on an earnings basis. But now that the split with Mueller Water has been completed, I believe the core Walter shares still have considerable upside potential over the coming months.

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