“The problem here is this: Sirius, Jones Soda and, to a degree, eTelecare are all speculative.” Brocade could even be considered speculative, he says. “I need you to clean it up and get a high quality healthcare, maybe a high quality defense and a machine industrial company.” There’s too much speculation in James’ portfolio for it to be truly diversified, Cramer says.
“It looks like you have a great oil driller; we got Deere which is a terrific agriculture machinery company; and Gilead which is one of my favorite biotech companies. Then you have Ralph Lauren and JC Penney,” Cramer says. These two are very well linked right now and he is worried an apparel company and a retailer are too close. However, Julie has five high quality stocks and Cramer is going to bless this portfolio, even though he’s a little antsy with the Ralph Lauren / JC Penney combination.
“We have the absolute perfect diversified portfolio! A gold, an oil, a finance, an insurer and a beverage company? Yes!” Cramer says. “That’s the way to play Am I Diversified!”