Mad Money Mailbag: Airline Avoidance
Editor's Note: The following are questions received from viewers of "Mad Money," seen every day at 6 p.m. EDT on CNBC.
What do you think of buying Southwest Airlines (LUV) , when Delta Air Lines (DAL) and Northwest Airlinesundefined are on the verge of bankruptcy?-- Josh from Georgia
James J. Cramer:
I would avoid Southwest at this time and any time down the road. I know that the company has the best financials in the industry, but I've saved myself a lot of money over the years by never investing in this cash-draining sector.
Procter & Gamble (PG) and Gillette (G) have been moving in unison, since the merger announcement in January. Does it matter which stock I buy?-- Bryce from Minnesota
James J. Cramer:
In the short term, maybe. In the long term, not really. Gillette was recently trading at a slight 0.8% discount to Procter's bid, but a few months from now, when the deal closes, everyone will be holding PG shares. In full disclosure, I own Gillette in my charitable trust,
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I own eBay (EBAY) , FedEx (FDX) , Genentech (DNA) , Caterpillar (CAT) and Pulte Homes (PHM) . Am I diversified?-- Mike from Indiana
James J. Cramer:
Yes, I'd say that you are diversified. I will say, however, that I'm less bullish on eBay these days, until we see what management has planned for its recent purchase of Internet phone provider
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Interested in more Cramer? Check out Jim's rules and commandments for investing from his latest book by
. It's a series of articles from Cramer on how to become a better investor. The following table lists some of the rules that Cramer dissects.
