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Jim Cramer's Mad Dash: CLF AIG

NEW YORK (TheStreet) -- Shares of Cliffs Natural Resources (CLF) are up roughly 6% after beating on top- and bottom-line earnings expectations, surprising many analysts. 

TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, says iron ore sales have refused to decline and are essentially saving Cliffs Natural right now. He added that some investors think the Chinese have been buying a lot of iron ore. 

Cliffs Natural is doing a lot of things to protect itself, Cramer said. He stressed that investors should not confuse protection with entrenchment. The company can also cut a lot of costs going forward. 

Turning to American International Group (AIG), Cramer was surprised the stock is trading lower after beating earnings per share estimates. AIG boosted its dividend by 25%, raised its buyback by $1 billion and trades at a 20% discount to its book value, which he estimates to be around $60 per share. 

However, he said the company faces a "challenging and competitive" business environment. Anytime management says "challenging" it translates to "sell" when it comes to the stock, Cramer pointed out. 

He thinks the current selling is premature, however, because AIG continues to do very well. Shares are lower by about 2%. 

- Written by Bret Kenwell in Petoskey, Mich.

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

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