'Mad Money' Mailbag: Fired Up for BTU

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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You like to focus on "best of breed" stocks, so what's your opinion of Peabody(BTU Quote)?

-- David from Tampa, Fla.

James J. Cramer: I like the coal industry, and Peabody is the biggest and best of the group. While the majority of my own energy investments are in more traditional oil and natural gas stocks, this company directly supplies utilities that are operating at record levels.

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I own Microsoft(MSFT Quote), Southwest Airlines(LUV Quote), Sanmina(SANM Quote) and Newport International(NWPO Quote). Am I diversified?

-- John from Kansas

James J. Cramer: You have three of a kind in tech stocks. That's good in poker, but not a good idea for investing. You have decent companies in Microsoft and Southwest, but I would add an oil company to offset the latter's exposure to rising fuel prices. And while I think speculation is OK, I'd stay away from the sub-$1 stocks like Newport, especially those that trade on the Bulletin Board.

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I've doubled my money in Magellan Midstream Partners(MMP Quote). Should I keep holding on?

-- Greg from Oklahoma

James J. Cramer: This is a solid energy pipeline company that reminds me of Kinder Morgan(KMI Quote). In fact, both companies yield around 5.7%, and Magellan even has better earnings coverage of its dividend. That said, when I double my money in a stock, I like to sell half my stake and play with the house's money. Otherwise, I risk being a pig and seeing my profits disappear.

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What's your opinion of WellPoint(WLP Quote)?

-- Thomas from California

James J. Cramer: That's a solid health insurer, trading at a 52-week high. But you know me, I prefer UnitedHealth Group(UNH Quote), which I own for my charitable trust, ActionAlertsPLUS, in this space. The company consistently posts the fastest earnings growth in the industry, but the stock also trades at just 18 times conservative 2006 estimates.

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Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here. Learn how to become a better investor. Get started now with the investing rules that Cramer lays out:

	1.	Pigs Get Slaughtered		2.	It's OK to Pay the Taxes
	3.	Don't Buy All at Once		4.	Buy Damaged Stocks
	5.	Diversify to Control Risk		6.	Do Your Homework
	7.	Don't Panic		8.	Buy Best-of-Breed
	9.	Defend Some Stocks		10.	Don't Bet on Bad Stocks
	11.	Own Fewer Names		12.	Cash Is for Winners
	13.	No Regrets		14.	Expect Corrections
	15.	Know Bonds		16.	Don't Subsidize Losers
	17.	No Room for Hope		18.	Be Flexible
	19.	Quit When Execs Do		20.	Patience Is a Virtue
	21.	Be a TV Critic		22.	When to Wait 30 Days
	23.	Beware the Hype		24.	Explain Your Picks
	25.	Find the Bull Market