'Mad Money' Mailbag: ConAgra Alternatives

Cramer talks turkey on the Butterball brand owner and its rivals.
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Editor's Note: The following are questions received from viewers of "Mad Money," seen every day at 6 p.m. EDT on CNBC.

Why aren't food stocks doing better these days? I personally own ConAgra Foods (CAG) - Get Report. What are your thoughts?-- Sharon from Houston, Texas

James J. Cramer:

The food companies have been hit hard by rising input costs and heavy price competition from both major brands and private-label goods. I should know, I own

General Mills

(GIS) - Get Report

for my charitable trust. As for ConAgra, while it has many popular brands like Butterball and Healthy Choice, the company has lower margins and more debt on its balance sheet than many of its peers. At this rate, the 27.25-cent quarterly dividend (4.7% yield) isn't safe for more than a couple of quarters, and I believe that viewers interested in this group should focus on Mills or

Sara Lee

(SLE)

.

What do you think of Medco Health Solutions (MHS) , which I received as a spinoff from Merck (MRK) - Get Report?-- Howard from Florida

James J. Cramer:

I believe the stock has been unfairly sold off, in the wake of

UnitedHealth Group's

(UNH) - Get Report

purchase of

PacifiCare Health Systems

(PHS)

. PacifiCare owns its own pharmacy benefit business, and UnitedHealth was one of Medco's largest customers. That said, UnitedHealth already has said it remains committed to Medco, and I believe the stock can bounce back in the near term.

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