Cramer's 'Mad Money' Recap: Hanesbrands Measures Up

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You should get your hands on shares of Hanesbrands(HBI Quote), because it's a spinoff that makes sense, Jim Cramer told his "Mad Money" TV viewers Wednesday.

Sara Lee's(SLE Quote) decision to spin off Hanes was a smart one because "a food company and a clothing company do not belong under the same roof," Cramer said.

Looking at historical evidence, Cramer noted that in 2001, Sara Lee had an 81% stake in Coach(COH Quote), but then dumped it because those business lines "didn't fall under the same roof either."

Since then, Coach has risen nearly 900%, said Cramer, and Hanes, which got spun off last month, could see the same results now that it's "free from the shackles of Sara Lee." Of course, Cramer noted, there are some temporary drawbacks, but most are not that serious. For instance, Sara Lee forced Hanes to take down a lot of debt during the spinoff.

So will the move be a delight or a debacle? The bottom line, Cramer said, is that spinoffs "tend to make you money. I would be a buyer of Hanes below $23."

In response to a caller, Cramer said that Under Armour(UARM Quote) benefits from having advertising related solely to sports. The advertisements play to the working man, Cramer said, "because they want to be like the guys in the NFL, too. I think UARM goes higher."

When answering a question about whether or not to believe the management at Jos. A Bank Clothiers(JOSB Quote) that the current inventory problem is short term, Cramer asked, "Doesn't that worry you that management says everything is fine?"

"My take is that this is a classic stay-away story," Cramer added. "Why do we have to go to uncharted waters when so many other stores are bulletproof?"