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Cramer's Mailbag: Apple's Fall Is Misleading

TheStreet.com Staff

Editor's note: Jim Cramer answers questions below.

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.

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).

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.

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.

Jimmy, please take a moment to review the insider purchasing taking place at Advanced Mirco Devices (AMD Quote), and please let me know what you think.

-- Anthony

Jim Cramer: Despite the price spike the day of ADM's recent analyst meeting, I wouldn't buy this stock at current levels. The company remains involved in a price war with Intel (INTC Quote), and no one wins in that situation.

At the time of publication, Cramer had no positions in stocks mentioned.