Editor's Note: The following are questions received from viewers of "Mad Money," seen every day at 6 p.m. EDT on CNBC.

I bought Pepsi (PEP) - Get Report after you said it was unbeatable, but the stock has since taken a real beating. What's your take now?-- Rich from California

James J. Cramer:

Pepsi remains one of my favorite large-cap stocks. It is a solid defensive holding that offers consistent earnings growth. One of my trading rules is that I never buy all of my stock at once, and I'd use this decline as a way to reduce cost basis.

I know that you have a positive outlook for the diagnostic companies. Does Biosite (BSTE) still have room to run?-- Phil from Wisconsin

James J. Cramer:

Biosite has recovered sharply from the huge drop it had in May. Over time, the stock could press higher as money continues to flow into the health care sector. That said, I prefer other companies in this group, and believe that Biosite's near-term upside potential could be limited.

I've held Applebee's (APPB) for about a year, and the stock is essentially back to where it started. Should I keep holding on?-- Marc from New York

James J. Cramer:

The restaurant group has had a nice run lately, though Applebee's has not participated as much as some others like

Darden Restaurant

(DRI) - Get Report

or

Brinker

(EAT) - Get Report

. I'd stick with these two best-of-breed casual restaurant chains instead, because they are carrying better comp sales momentum into the second half of the year.

If people were paying 30 times earnings for Motorola (MOT) in the past, does the company's current price-to-earnings ratio of 18 present a buying opportunity?-- Brian from Tennessee

James J. Cramer:

The 30 multiple that people were paying was based on depressed earnings, so it probably won't stick as earnings continue to improve at Motorola. That said, the company is taking share from its competitors in the mobile phone handset business, and I believe that CEO Ed Zander can lead Motorola into the mid-$20s. (Please note that I own this stock for my charitable trust,

ActionAlertsPLUS.)

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clicking here

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