Mad Money Mailbag: Props for BHP Billiton

The company has a big buyback in place.
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Editor's note: The following are questions received from viewers of "Mad Money," seen every day at 6 p.m. EST on CNBC.

What do you think of BHP Billiton (BHP) - Get Report

?

-- Michael Latko

James J. Cramer

: I own BHP in my

ActionAlertsPLUS.com charitable trust, and believe the stock is cheap here given the strong global demand for resources. This is my top pick in the sector, with a monster buyback in place, and I suspect we see $40 a share in 2006.

I have all of my eggs in one basket, Wal-Mart (WMT) - Get Report. What do you think

?

-- Kamala McLemore

James J. Cramer

: I preach diversification as the only free lunch in investing, and you aren't taking the handout. Look, I think you need five stocks in five different industries in order to be diversified. As the former employees of Enron and WorldCom will attest, you can lose a lot of money by concentrating your assets.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by

clicking here

.