Riverbed Technology (RVBD): "Everybody wants to be in it but its a telco equipment stock and I am not going to touch telco equipment."
Altria (MO). While not politically correct, he said MO this is "a good yield play if you want some income."
Saving Companies Money
In the second "Executive Decision" segment, Cramer spoke with Bryan Martin, chairman and CEO of 8X8 (EGHT), to learn more about the company Cramer said on a past show is highly speculative, one, because it's so small, and it can only be risky if you chase it.
8x8 saves small businesses money by bundling communications through a cloud based service. Martin said the technology company started in the home phone market and expanded into the business market, which has been extremely profitable and fast-growing.Martin said the average new customer last year bought 14 new phone lines from him, so it's a tiny end of the small business market. Most of these companies still have AT&T (T) or Verizon (VZ) as their long distance provider. Windstream (WIN) is a competitor, Cramer noted. Martin said his company brings in a turn-key solution: the phones, the service. "We become your monthly long-distance provider and we have other features, too," he added. The capabilities are up even though the price goes down. 8x8 has grown to 30,000 customers in the last four years with a compound annual rate of 21%. Martin said his company was issued its 83rd patent Thursday. The communications industry, especially in voice, is a patent minefield. Martin said his company has its own mini portfolio of patents. Cramer noted that the small business market is not growing in the country. Martin said that even though the access line market is declining, the penetration of 8x8's technology is already at 8.2%. "We think the business market is going to go the same path as the home market which is at 30%," he said. It's always a compelling story, Cramer said. "I always like to admit when I've been too quick to say be careful," he said, but the stock is "still speculative because of the size."
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: Lululemon (LULU), Apple (AAPL), Cornerstone OnDemand (CSOD), SunTrust Banks (STI) and eBay (EBAY). Cramer said sell Cornerstone and own Bristol-Myers (BMY). "So they'll have a power company, an Internet company that does banking, a bank, and they would have tech," he said. The second portfolio included: Intel (INTC), Google (GOOG), Chipotle (CMG), GT Advanced Technologies (GTAT) and Gilead Sciences (GILD). This is not a diversified portfolio, Cramer said. It has too much high risk in terms of stocks. "You have an internet company, you've got a tech company, you've got a similar tech company," he said. "Keep Intel. You've got a biotech company and you have a food company. I need to see some diversified industrials. Please cut the risk profile." The third portfolio included Apple (APPL), Intuitive Surgical (ISRG), PespiCo (PEP), Johnson & Johnson (JNJ) and Walt Disney (DIS). "I'm not going to say it's not diversified," Cramer said.. --By Anthony Buccino for TheStreet.com To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
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