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Mad Mail: Is BP Still Buyable?

Considering the Gulf of Mexico oil spill and the hurtin’ that Europe’s debt problems put on the American markets, is BP still a good investment? That’s what Blaine in Iowa asked during Monday’s Mad Mail. Despite all those problems, though, Cramer gave the stock his ultimate vote of confidence: His charitable trust bought more BP today because he thinks it’s “way overdone on the downside.” He also said that the amount of money it will take to clean up isn’t going to be anywhere near the amount of market cap that has been lost. “More importantly,” Cramer asked, “what happens if they fix that [leak]? That stock picks up a quick $5. And I do believe the dividend is safe.”

Meanwhile Jeff in New Jersey lamented the losses in his portfolio’s two largest positions, Potash and Petroleo Brasileiro . Not only did he own them through the crash of 2008, but the recent correction cost him another 50% in both stocks. To help out, Cramer recommended taking profits on half of those positions and switching into more evenly traded stocks like Bristol-Myers Squibb, Eli Lilly or even Health Care REIT, for its near 7% yield. “You need to cut back on volatility,” Cramer said. “It’s too hard to be doing what you’re doing.”

And lastly, both Kate in Connecticut and Lisa in Annapolis commended Cramer for his calm and poise when the Dow took that 1,000-point plunge last Thursday. He said he “knew that that sell-off was phony … because it’s not the way stocks work.” So when Procter & Gamble started to rebound, Cramer realized that the exchanges’ machines were working properly again, and that’s why he told people to buy the stock “using a very high limit.” “I got so many people who made money on that trade,” Cramer said, that he’s grateful he was on the air at the time.

Still, he thinks Kate in CT wanted to thank Cramer for his wisdom on Thursday during decline. “I knew that that sell-off was phony. I knew it because it’s not the way stocks work.” So when PG started to rebound, he realized they’d figured out the machines. And that’s why he told people to buy PG “using a very high limit.” “I got so many people who made money on that trade.” He’s grateful he was on air at the time. Still he thinks the market needs to be “better prepared” for situations like those and the government must protect “the little guy,” or retail investors. That’s “what I felt broke down on Thursday.”

Cramer’s charitable trust owns BP and Procter & Gamble.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

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