Cramer on Tuesday began "Mad Mail" by updating his "Wall of Shame."
The "Mad Money" host removed Robert Fornaro, CEO of AirTran , for selling the Orlando, Fla.-based company to Southwest Airlines on Monday. Thanks to the deal, Cramer noted that AirTran shareholders got a 61 percent premium to where the stock was trading on Friday.
Cramer then went to the inbox and first answered a letter from Alejandro, who wondered how the Federal Reserve’s plans to bolster the economy affect smaller banks like New York Community Bancorp . What action the Fed takes doesn't matter, Cramer said, credit losses do. If credit losses continue to improve, financial institutions are able to keep, if not raise, their dividend.
In the next e-mail, Melodee asked Cramer to explain mergers and acquisitions. She owns Advanced Micro Devices , which some have said could be acquired by Oracle . If that were to happen, she wondered what move Cramer would make. The “Mad Money” host said it's highly unlikely Oracle would pick up AMD, so Melodee shouldn't be thinking about it. Instead, she should concentrate on the fundamentals of AMD, which are "awful." He would sell AMD right now.
Bob in Kentucky asked Cramer why he continuously supports Baidu.com , but questions every other China-based company. Cramer explained that the company’s fundamentals are sound and noted that it operates like an American company. He added that its business model is similar to Google's , only it's in China.
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