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Mad Mail: Buy Freeport-McMoRan for Gold?

Tuesday, 16 Jun 2009 | 8:33 PM ET

Hi Jim!: You seem to like Brocade and EMC, but what about QLogic ? Wasn't it a former bellwether in the storage group? Could it be a star again? Thanks for your profitable view of the market each afternoon. You've helped me, a teacher, make enough money to remodel my home! No kidding! --Nancie

Mad Mail
Mad Money host Jim Cramer answers your emails.

Cramer says: “You raise a great question. I happen to have not done enough homework on Qlogic. When I saw the bid for Emulex , which is a big competitor of Qlogic, I got concerned. I will go back and redouble my efforts. But you’re absolutely right, it was the bellwether. But I don’t like it right now. Maybe if I do more work on it I’ll change my mind.”

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Hello Jim: I religiously watch your show every single day, and although my wife gets annoyed that I spend time watching you versus spending time with her, I feel confident that I've invested in the best companies thanks to you! Keep up the great work! I have a fair amount of Freeport-McMoRan in my portfolio right now and I was wondering if that could also serve as a substitute for SPDR Gold Shares ? --Prashant

Cramer says: “Freeport is far more copper than gold. So you really do not have a pure gold play. I used to own Freeport for my charitable trust. I decided that if gold comes down I would buy the GLD. That is not a substitute. That is the actual price of gold. That’s what you should be buying. I think it can go below $90.”

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Hey Jim: A cowboy, boo-yee haw, from Mansfield, Texas. There seems to be a large inequity in the energy sector between the current price of natural gas and the escalating price of crude oil. I don't recall ever seeing this large of a separation. Do you think there will be a correction that will bring the markets back in line? --Bud

Cramer says: “It’s 18 to one. It’s the biggest disparity ever. There are a lot of buyers in the UNG. I don’t trust that…I do believe that natural gas is coming back. But please don’t buy it with the UNG. Pick a high-quality natural gas play [like] Southwest Energy…”




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ELUX.B
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