When will people realize that the market doesn't revolve around Intel ( INTC), Jim Cramer asked his "RealMoney" radio show listeners Wednesday.

"This, frankly, is an opportunity to buy good tech," he said.

Some of the opportunities have already occurred, according to Cramer, pointing to the fact that Broadcom ( BRCM) and Marvell ( MRVL) were down in the morning but have edged back up.

JDSU ( JDSU), Conexant ( CNXT) and Qualcomm ( QCOM) are also companies he included in the good tech list, because these are companies involved in mobile communications and set-top boxes.

The chips that go into things like handheld devices that play video games are hot, said Cramer, but Intel doesn't specialize in these areas. He said it's essentially a PC chip company.

As for Yahoo! ( YHOO), which he owns for his Action Alerts PLUS charitable trust, he said it was a perfect example of why he doesn't like to own expensive stocks.

He took some Yahoo! off the table, but Cramer said he didn't sell enough because he bet it would go higher.

"That bet was wrong," he said.

With a company as expensive as Yahoo!, it will get hammered when it disappoints Wall Street. Why does he think it's so expensive? Because the company trades at 70 times earnings, whereas the average company trades at 18 times earnings.

Even though it reported a good quarter, he said, Yahoo! is so expensive that it got hit for not beating Wall Street expectations.

When you have a company this expensive, there is no room for error, Cramer said, adding that all companies make an error at some point in time.

Food for Thought

A caller who has been holding onto Archer Daniels Midland ( ADM) wanted to know what was behind the company's recent run higher.

Cramer said that he's been recommending the stock since it was at $22 because people are beginning to understand that Archer Daniels may be one of the best bio-fuel bets on the market.

The food company is being treated like an alternative energy play, he said.

At $28 it may be almost out of gas, he added, saying that he would let it come back down a bit before he bought the stock, and that if he owned it he'd do a little "register-ringing" because it's up so much.

Another caller said that he'd invested in a company that filed for Chapter 11, and received a letter of transmittal saying that he'd receive 32 cents a share if he surrendered the stock.

Cramer said this illustrated why he is adamant that when a company files for Chapter 11 investors should stay away. The stock will be worthless, he said.

If a company comes out of Chapter 11 and issues new common stock, there could then be something interesting there, he said. But unless that happens, think of the stock as worthless.

Cramer encouraged a caller who had bought Citi Trends ( CTRN) to not be too discouraged by the fact that the stock dipped because the retailer is one of the fastest-growing companies that he's come across.

When he recommended Zumiez ( ZUMZ) at $33 the retailer went to $36, but then the company did an equity offering and the stock lost ground, Cramer said.

Citi Trends is in a similar situation, he said, adding that it's another growth retailer going from regional to national that is taking a momentary breather.

He pointed out that Zumiez is now at $49.50, and that Citi Trends will likely move higher.

"People need to be a little more sensitive to the idea that when you have these ... young stocks, they trade erratically," Cramer said. "This is often an opportunity."

As for C.R. Bard ( BCR), he said that it's a terrific medical device company that is growing at 15%, but sells at 21 times earnings.

Am I Diversified?

Wednesday is "Am I Diversified?" day, and Cramer blessed the first listener portfolio of the episode.

The portfolio consisted of these five stocks: Ceradyne ( CRDN), a ceramics maker with body armor exposure; Intel; energy play Cimarex ( XEC); Gilead ( GILD), one of Cramer's favorite biotech plays; and diversified company General Electric ( GE). (Cramer noted that his Mad Money TV show is on CNBC, a unit of GE.)

Regarding another portfolio, Cramer did not wholeheartedly recommend the tech and energy play Metretek Technologies ( MEK) and gaming company Empire Resorts ( NYNY) as stocks he would choose, but he said that the caller who owned the companies was diversified.

The other three companies in the portfolio included glass company Corning ( GLW), instruments systems company Northwestern ( NWEC) and Procter & Gamble ( PG), the consumer products maker.

Cramer also blessed a portfolio that included Goldman Sachs ( GS), ITT Industries ( ITT), Companhia Vale do Rio Doce ( RIO), Marathon Oil ( MRO) and Intermagnetics ( IMGC).

However, he would not bless a portfolio that had three tech companies -- Apple ( AAPL), Rambus ( RMBS) and Sify ( SIFY) -- along with natural gas company Chesapeake ( CHK) and delivery company UPS ( UPS).

And even though he liked Caterpillar ( CAT), Whole Foods ( WFMI) and Evergreen Solar ( ESLR), he said there was too much overlap between Cisco Systems ( CSCO) and Palm ( PALM) for another portfolio to be diversified.

Similarly, there was too much tech in one listener's portfolio with Google ( GOOG), Computer Sciences ( CSC) and Broadcom. But he did say that he liked the listener's holdings of Myogen ( MYOG) and Ameritrade ( AMTD).

Quick 401(k) Fix

Finally, Cramer took some time to fix a 401(k). A 29-year-old listener wrote in saying that Fidelity recently took over his 403(b) plan, which is similar to a 401(k).

Now with more funds to choose from, his plan is broken down into 65% stocks, 10% blended investments and 25% bonds.

Cramer said that he is too young to be in bonds or blended investments, and that it's time for him to "put the pedal to the metal" and own equities.


Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.

At the time of publication, Cramer was long Ameritrade, Intel, Procter & Gamble, Qualcomm, Yahoo!.

James J. 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 Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict."

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