This article was originally published March 12.Click here for an archive of Jim Cramer's Mad Money recaps.
"I want you to stay the course. This rally is real," Jim Cramer told the viewers of his "Mad Money" TV show Thursday.
And finally, General Motors ( GM) announced it doesn't need the last $2 billion from the government. It may not be much, but it's something, Cramer said. These are the seven substantive changes that occurred just this week, Cramer told viewers. And that's why he doesn't feel its over yet.
Cramer said he's still a fan of high-dividend paying stocks that also offer growth, but warned that not all dividends are created equal. In Alcoa's case, he said "this is exactly what a company looks like right before it cuts its dividend." Alcoa is currently yielding over 11%, but Cramer said that number should come crashing down hard. The stock has suffered a 70% decline in value, and the company has more debt than it does cash on hand. In order to just sustain its current dividend, the company would need more than $545 million, and that is more than it will likely be able to earn. Cramer said another stock to watch out for is BB&T ( BBT). BB&T borrowed over $3.1 billion in TARP money from the government, but stands alone as the only bank taking TARP money to not cut its dividend.
Sell BlockIn this segment, Cramer asked whether Alcoa's ( AA) dividend is safe. The answer, he concluded, is a decided "no."
Outrage of the DayCramer sounded off at the regulators who let Bernie Madoff and countless others operate for years without noticing any fraud. He again said that Wall Street needs to be regulated at least as much as gambling is in Las Vegas. Cramer said Wall Street doesn't need more regulatory agencies, it needs more smart, knowledgeable regulators who can keep up with a complex and evolving world. Cramer said today's crooks can run circles around those who just check off boxes on a list. Today's regulators, he said, need to understand the business and be able to think things through.
Mad MailCramer told a viewer that ConocoPhillips ( COP) has a great yield and great management and he'd still be a buyer.
Am I Diversified?Cramer spoke with callers to see if their portfolios have what it takes. The first caller's portfolio included Caterpillar ( CAT), Union Pacific ( UNP), DelMonte Foods ( DLM), Coca-Cola ( KO) and U.S. Steel ( X). Cramer said he considers Coca-Cola a food company, like DelMonte, and recommended selling DelMonte for a healthcare company. The second caller's top holdings included Unilever ( UN), Edison ( EIX), Cisco ( CSCO), Bristol-Myers Squibb ( BMY) and Wells Fargo ( WFC). Cramer called this portfolio "stellar."
The third caller had Agnico-Eagle Mines ( AEM), Quanta Services ( PWR), Pepsi ( PEP), Disney ( DIS) and Wal-Mart ( WMT) as their top five stocks. Cramer said that this caller knew her diversification.