Cramer's 'Mad Money' Recap: A Guess? Worth Venturing

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Stock-picking is like fishing, Jim Cramer told viewers of his "Mad Money" TV show Monday night. While "even some great fisherman have some get away," Cramer was determined not to let Guess?(GES Quote) escape him.

Guess? "has the best high-end jeans," Cramer said, and its hyper-sexualized advertisements are "bringing teens to stores in droves." Guess? shares have hit a 52-week high, and the stock is up 109% since its October 2005 low. Cramer added that, while he may have missed the teen retailer the first time around, he believes it's destined for another move up.

Most analysts aren't bullish enough, leaving the company virtually ignored, Cramer said. Guess? is an "aspirational brand," in that it is a step up from Gap(GPS Quote) or American Eagle(AEOS Quote) or Pacific Sun(PSUN Quote).

"When they want to feel rich, the kids go to Guess?," Cramer said. "The Guess? brand was popular 15 years ago, but it's still standing with fresh merchandise."

Cramer also noted that retailers that do well in back-to-school season generally are popular during the holiday sales season too. "I think Guess? has so much potential, it could double its store count in America," he added.

Guess? should deliver strong margins because its brand is selling, leaving no need for discounts. "Comp stores were up 11.3% and inventories were comparably low. Guess? had a great September, which should be good through the end of the year," Cramer noted.

Cramer warned that "there will be volatility," but noted that a "short growth spurt on an expensive stock could help the bottom line." Cramer expects the retailer to meet or beat its same-store sales going forward.

The first caller of the show asked about Blue Nile(NILE Quote), which is down 8% for the year due to several downgrades. Cramer said he doesn't "regard it as cheap," but added that he's "not enthusiastic about the price."

In response to a second caller, Cramer said he's not backing away from IAC/Interactive(IACI Quote), but said that Google(GOOG Quote) was still a strong performer.