Cramer's 'Mad Money' Recap: Child Stars

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Market players spend way too much time talking about teenage apparel, Jim Cramer told viewers of his "Mad Money" TV show Monday.

Cramer believes that it's time to shift focus to a younger demographic and start buying some kiddie-apparel stocks. The two plays Cramer likes in this area are Gymboree (GYMB Quote) and The Children's Place (PLCE Quote).

As teenage-apparel stores, such as American Eagle (AEOS Quote), Aeropostale (ARO Quote) and Abercrombie & Fitch (ANF Quote) continue to eat one another, Cramer believes that finding a winner here could be difficult.

One of these stocks could make you money, he said, but it would be difficult to choose which one. On this show, we favor monopolies, he said.

The growth in the apparel world is in the children's apparel group, he said. Here there are only two big players: Gymboree and the best-of-breed, The Children's Place.

Both of these kiddie-apparel stocks are worth buying, according to Cramer. Not only do they both have terrific management, but both are feasting off the vicious decline of GapKids, a division of Gap (GPS Quote).

Gymboree and The Children's Place can both win because two's company, not a crowd, he said. It's a happy-go-lucky duopoly and the place to be heading into the fall.

Gymboree is all about growth, as it recently set its sights on the boys' and newborns' market. Not only has the company shifted into new genders, but it also has larger sizes, Cramer said,

He added that the company's second quarter was not a loss because Gymboree whipped itself into shape, he said.

"It's done something to differentiate itself from stocks," he said. "Its management has raised its numbers and negotiated better deals with suppliers."