At last,

a contest that we can learn from (click here to register)

, one featuring diversification, not single-digit wonders. I am talking about

the winner of Week Two

of the portfolio challenge here at TheStreet.com.

I have been a critic of most of the contests I have seen because they are totally unrealistic. A contest should be about being smart, picking stocks that can work -- admittedly for the short term -- that can make you

learn

about new stocks. That can make us

all

learn about new stocks. That's how I used it, something that I included in the handbook for people who came to work for Cramer Berkowitz (an outfit I have

no

affiliation with because I can't own stocks given my high-profile jobs talking about stocks).

Cramer: I Can't Get Enough 'Beat the Street'

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It's incredible how strong the portfolio that won was. Let's go over the victory. First was

Eaton

(ETN) - Get Report

; if you are thinking about manufacturing plays, you almost always think of

GE

(GE) - Get Report

,

United Technologies

,

Caterpillar

(CAT) - Get Report

and

Honeywell

(HON) - Get Report

. But how about Eaton? This is a quintessential weak-dollar stock that makes terrific hydraulic products for engine components. It's a

Cummins

(CMI) - Get Report

with a wider product portfolio. I thank the contestant for bringing this 11 P/E stock to all of our attention.

Next is

Metalico

(MEA)

. As someone who has been possessed by the need by steel companies for scrap metal --

Nucor

(NUE) - Get Report

just bought a company -- I don't know how I missed this one. Up 33% the week of the contest, the stock's extended. On a pullback, isn't this one a natural given the hot steel market? Look at

US Steel

(X) - Get Report

!! Maybe this is the next big one?

Adtran

(ADTN) - Get Report

's been such a dog that I know I for one had given up on it. But you don't give up on a telco play that meets numbers and orders up a giant buyback when the float is small. Well done. Another pullback call that makes sense given the 21% gain.

Remember

Knight Capital

(NITE)

? It was supposed to be a big loser here. Volumes were way down. But the contestant spotted a business model that seems like it can generate more revenue than I thought possible. What a pick ahead of a quarter that should have been a bomb. The stock seems ready for even more of a takeoff.

Finally,

Yingli

(YGE)

. This hasn't been a favorite of mine. But so what? It was a clairvoyant play on higher oil prices, and one that simply has to be remembered as a terrific option call on oil prices next time they drift down.

The trade out? Miraculous. A short play that got closed out before the big run in stocks.

Bravo.

Here's my take; this is how a game should be played. We can learn from these winners. We can learn from this player,

Nascar

.

My prediction? Forget the gurus. What's Nascar buying?

And when are you going to go up against him for $5,000?

Am I shilling for the contest? No, I am saying, this is how I learn about new stocks. This is how you can learn new stocks.

And this is how you can learn from others, while you are at it.

Please note that due to factors including low market capitalization and/or insufficient public float, we consider Metalico to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.

Jim Cramer is a featured commentator for

CNBC

, which is owned by General Electric; as part of his contract, Cramer holds restricted shares in GE.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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