Cramer's 'Mad Money' Recap: Heelys Worth a Roll

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Heelys, a footwear maker set to go public Thursday, could be "the last great fad initial public offering of the year," Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

Market players look at fads as something too risky to touch, but according to Cramer they are opportunities to make money. He told his viewers to think of all the people who dismissed Crocs (CROX Quote), Under Armour (UARM Quote) and Zumiez (ZUMZ Quote) as fads, only to watch these stocks fly higher after their IPOs.

When approaching a "faddish" IPO like Heelys', Cramer said, people need to know their exit strategies.

Taking a look at Heelys' fundamentals, he said the stock has accelerated revenue growth, in addition to a fad that he considers "sustainable" and one that has "barely begun to penetrate its market." Heelys makes athletic shoes that feature a wheel in the heel, allowing wearers to switch from walking to rolling and back again.

The company sells about 4 million pairs of shoes a year, but that number could grow a lot more, said Cramer, especially since its shoes are aimed at a young demographic, and growing kids need new shoes a couple of times a year.

Comparing the Heelys offering to recent others of similarly faddish companies like Crocs and Zumiez, he said market players should be willing to pay $22 to $23 a share when the company goes public under the symbol "HLYS" Thursday.

Looking at the comps, Cramer said Heelys should be worth $26 a share eventually and it could even go to the mid-$30s.

The bottom line: buy Heelys in the low $20s and sell it as soon as it crosses the $30 line.

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