Mad Money Mailbag: The View on Allegheny

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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What do you think of Allegheny Energy(AYE Quote)?

-- John from W.V.

James J. Cramer: This company has a terrible balance sheet, and I believe had to eliminate its dividend three years ago. So unless you want to speculate that the company is a potential takeover target, I'd focus elsewhere in this sector. Duke Energy(DUK Quote) is my personal favorite.

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What's your take on RPM International(RPM Quote)?

-- Katie from Texas

James J. Cramer: In my opinion, the stock is going to have a tough time breaking out of the high teens, as its input costs continue to rise significantly, in the aftermath of Hurricane Katrina.

Add in RPM's potential asbestos liability, and I believe there are too many external forces that could hold the shares back. Sure the company has a 3.2% dividend, but I believe the downside potential of the stock outweighs this.