Cramer Answers on Stockpickr Wednesday

On Stockpickr Answers Wednesday and late Tuesday, Jim Cramer responded to a new batch of questions posed by members of the Stockpickr community. Anybody can ask, respond or comment at Stockpickr Answers and the top responders get ranked in our "Top Analysts" section.

Here are a few of the questions Jim responded to:

• I just saw a chart for Baidu.com(BIDU Quote) and noticed it is up huge since mid-April. I haven't seen much discussion about this stock here on StockPickr. Is it just not on anyone's radar? Are people avoiding it for some reason?

• Home Depot(HD Quote) just announced a big buyback with cash and debt and the shares popped. Wouldn't the folks at Home Depot wait for a pullback before they start buying back?

• Resource Capital(RSO Quote) is a REIT primarily in commercial real estate. They are at seven times forward earnings and insiders have purchased over 370,000 shares in the last six months. They also recently increased their dividend. Would you categorize the company in the same insider buying category as L-3 Communications(LLL Quote)

• Six Flags(SIX Quote) announced a 40% equity stake in Dick Clark Productions, which seems to be another step in its turnaround story and a way to diversify their offerings. Yet, it's trading down today over 1.5%. Maybe the street doesn't like it? What's your take?

• I read what you said about how high multiple stocks react to increases (or fears of increases) in interest rates. I was unclear, however, whether you were advising Celgene(CELG Quote) owners to sell in this environment or not. Could you please clarify?

• I bought a quarter position of Zimmer Holdings(ZMH Quote) 2.5 points ago. It is still over 5% below its 52-week high. Do I wait for another pullback and stick with my quarter position or add at current levels? Do you ever increase your cost basis with new buys?

• Is the "Rule of 20" market model a decent high-level means to evaluate the S&P 500's value (where the S&P 500 forward P/E is in approximation to 20 minus the 10-year Treasury note yield)? Are there any pitfalls to using this model to determine if the market is valued fairly? For example, the S&P 500 forward P/E is roughly a value of "15" in approximation to the 20 minus the 10-year Treasury note yield (20 - 5.1 = 14.9).

• Bucyrus International(BUCY Quote): Thoughts?

• I'm in my 20s, single and ready to jump into the market. Of all the stocks you've been bullish on recently, which one are you most bullish on over the next year?

• In Credit Suisse v. Billing, the U.S. Supreme Court failed to find any antitrust violation against the investment banks regarding their alleged collusion involving the tech IPOs of the late 1990s and 2000. What I took away from the case is to exercise even more caution when contemplating the purchase of stock in an IPO, since any possible suit based upon an anti-trust violation theory against the investment banks seems to have been effectively nullified by the high court. I am interested on your take.

To watch Janet Alvarez's video take of this column, click here.