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Mad Mail

Dear Jim: You recently said sell Target, which I own, and buy Wal-Mart . One of your reasons is that WMT is not going to build a lot of new stores in the US. Will this not help companies like TGT and Lowe's? Both of these companies are expanding. With WMT building less, these companies will not have to compete for land, contractors, sub-contractors and the like. I am interested in your thoughts. --Jim

Cramer says: "If you own Target, I would ring the register. It's had a good run. Wal-Mart is just a little bit cheaper." And while everyone does benefit from Wal-Mart scaling back its building, the one who benefits the most is Wal-Mart because it can buy back stock and fix up its stores.


Dear Jim: I'm so confused. On Tuesday you profiled Verizon positively, but it has a price-to-earnings-growth ratio of 3x. Can you clarify when I should apply your 2x limit rule and when I don't need to? --Craig

Cramer says: "I think Verizon's growth rate is accelerating." Cramer isn't concerned that Verizon violated the 2x rule because it has yield protection. "If it didn't have the yield, I would be a seller of the stock."


Dear Jim: I know you have liked the infrastructure plays, but I have not heard you talk about ABB Ltd. in a long time. I was wondering if you read the comments from the CEO yesterday stating that business is so good they will have to update their earnings and do something with all the surplus cash. It sounds like this might be a good opportunity to look at ABB again. --Mark

Cramer says: "You are dead right. I like Foster-Wheeler, I like McDermott, and I like ABB." But they've all run too much. "Let the market come down before you pull the trigger."

Questions? Comments? madmoney@cnbc.com

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