Shares of Kansas City Southern are up a modest 14% so far this year and trade at 18.9 times earnings with a 16% growth rate. Cramer said that's pricey compared to 12.8 times and 14% for Union Pacific ( UNP), but in this case investors get what they pay for... growth.

Lightning Round

In the Lightning Round, Cramer was bullish on Michael Kors ( KORS), Morgan Stanley ( MS), Wells Fargo ( WFC), International Paper ( IP), Yahoo! ( YHOO), American Electric Power ( AEP), Tractor Supply ( TSCO) and EQT Corp ( EQT).

Cramer was bearish on Cabot Oil & Gas ( COG).

Am I Diversified?

In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.

The first portfolio included: Clean Energy Fuels ( CLNE), Cisco ( CSCO), Groupon ( GRPN), Broadcom ( BRCM) and Banco Santander ( SAN).

Cramer said Cisco and Broadcom were too similar and suggested selling Cisco and Groupon and adding a biotech and an industrial stock to complete this portfolio.

The second portfolio's top holdings included: General Mills ( GIS), Procter & Gamble ( PG), Kellogg ( K), IBM ( IBM) and JPMorgan Chase ( JPM).

Cramer said he'd sell General Mills and add in a bank and a drug stock to diversify this portfolio.

The third portfolio had: Kellogg, Norfolk Southern ( NSC), Walt Disney ( DIS), Abbott Labs ( ABT) and Bank of America as its top five stocks.

Cramer said this portfolio was perfect and he wouldn't change a thing.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer said there was not one, but two big deals in the oil patch today. Unfortunately, they were both bad ones and they both involved the same company, Freeport McMoRan ( FCX).

Cramer said Freeport massively overpaid for Plains Exploration ( PXP) and McMoran Exploration ( MMR), which justifies the company's 16% loss in its share price Wednesday.

McMoran Exploration's latest project in the Gulf has been a disaster, said Cramer, which makes one wonder why Freeport would pay up 87% for the company. Likewise, Plains Exploration owns a sizable chunk of McMoran, raising eyebrows all around.

Cramer said Freeport McMoRan used to be a pure play on copper, but now has muddied the waters by adding oil. He advised selling all three companies by Thursday at the latest.

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To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

-- Written by Scott Rutt in Washington, D.C.

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC
At the time of publication, Cramer's Action Alerts PLUS had positions in ABT, AAPL, JPM, SBUX and WFC.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of or its affiliates, or CNBC, NBC Universal or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

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