Shares of Kansas City Southern are up a modest 14% so far this year and trade at 18.9 times earnings with a 16% growth rate. Cramer said that's pricey compared to 12.8 times and 14% for
, but in this case investors get what they pay for... growth.
In the Lightning Round, Cramer was bullish on
American Electric Power
Cramer was bearish on
Cabot Oil & Gas
Am I Diversified?
In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to
to see if investors' portfolios have what it takes for today's markets.
The first portfolio included:
Clean Energy Fuels
Cramer said Cisco and Broadcom were too similar and suggested selling Cisco and Groupon and adding a biotech and an industrial stock to complete this portfolio.
The second portfolio's top holdings included:
Procter & Gamble
Cramer said he'd sell General Mills and add in a bank and a drug stock to diversify this portfolio.
The third portfolio had: Kellogg,
and Bank of America as its top five stocks.
Cramer said this portfolio was perfect and he wouldn't change a thing.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer said there was not one, but two big deals in the oil patch today. Unfortunately, they were both bad ones and they both involved the same company,
(FCX - Get Report)
Cramer said Freeport massively overpaid for
, which justifies the company's 16% loss in its share price Wednesday.
McMoran Exploration's latest project in the Gulf has been a disaster, said Cramer, which makes one wonder why Freeport would pay up 87% for the company. Likewise, Plains Exploration owns a sizable chunk of McMoran, raising eyebrows all around.
Cramer said Freeport McMoRan used to be a pure play on copper, but now has muddied the waters by adding oil. He advised selling all three companies by Thursday at the latest.
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-- Written by Scott Rutt in Washington, D.C.
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