The first portfolio included: Armour Residential ( ARR), LinnCo ( LNCO), Nordic American Tanker ( NAT), Banco Santander ( SAN) and Vodaphone ( VOD). Cramer said this portfolio was "perfection" when it comes to diversification. The second portfolio's top holdings included: Ford ( F), Dana Holding ( DAN), Smith & Wesson ( SWHC), Alcoa ( AA) and KeyCorp ( KEY). Cramer advised selling Dana and adding a drug company to properly diversify this portfolio. The third portfolio had: Chicago Bridge & Iron ( CBI), Eaton ( ETN), HollyFrontier ( HFC), Penske Automotive ( PAG) and Westport Innovations ( WPRT) as its top five stocks. Cramer said he'd allow Westport and Penske in the same portfolio assuming Westport is considered a speculative stock.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer highlighted a handful of terrific earnings reports. He said that DuPont ( DD), an Action Alerts PLUS holding, was like a "C" student delivering a solid "B" on the final exam. Meanwhile, Travelers delivered a fantastic quarter that no one saw coming. Then there's IBM ( IBM), another Action Alerts PLUS name. Cramer said this company continues to make a ton of money with 90% margins in software. Finally, there's Google ( GOOG), a company that blindsided investors last quarter, but redeemed itself this one with both earnings and a solid strategy for growth and profitability. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC