'Mad Money' Mailbag: Some Favorite Foods

Editor's Note: The following are questions received from viewers of "Mad Money," seen every day at 6 p.m. EDT on CNBC.

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Hershey Foods(HSY Quote) has been a good investment for me. What other food stocks do you like?

-- Mark in South Carolina

James Cramer: I believe that General Mills(GIS Quote), a stock I own in my charitable trust is best-of-breed in this group. (To see all of the holdings in my charitable trust, visit ActionAlertsPLUS.) That said, even though these companies are often seen as defensive holdings; earnings continue to be impacted by high food-ingredient costs. Two other names I like in this space are Wrigley(WWY Quote) and Kraft(KFT Quote).

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I used to work for Bristol-Myers(BMY Quote) and currently have 75% of my 401k in company stock. Should I sell some BMY shares now, or wait a while?

-- Mike in South Carolina

James Cramer: Keep in mind, that I like Bristol's near-term prospects very much -- the 4.5% dividend yield appears secure and the company is positioned well to take market share away from its peers. That said, you should sell half of your Bristol holdings as soon as you read this. The lesson we learned from the collapse of the Internet bubble and the Worldcom/Enron debacles is that retirement accounts must be diversified. At most, you should have no more than 25% of your 401k or IRA in any one stock. To get down to this figure, I'd suggest selling more Bristol if it moves up toward the high $20's.

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What is your opinion on May(MAY Quote)? Should I hold and take the Federated(FD Quote) stock?

-- Joan in New Jersey

James Cramer: Viewers of Jim Cramer's "Mad Money" know that I am not an arbitrageur. With that in mind, I think you have to do a little register ringing with May here. The stock is up 39% year to date, and I am not a fan of the retail space with the Fed raising rates and oil prices still above $50 a barrel.

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Please STOP, STOP, STOP on the Halliburton(HAL Quote) recommendation. There is something wrong with the moral compass of the management of Halliburton.

-- Lynne in California

James Cramer: Jim Cramer's "Mad Money" is about making money, and Halliburton is my top pick in the oil service space. (I own shares in my Charitable Trust. For more information on my trust, please visit ActionAlertsPLUS.) My decision to own this stock is not a reflection of my social views, and I believe the current geopolitical landscape is conducive to having some of my money allocated to Halliburton.