Cramer's 'Mad Money' Recap: The Turn of the Reebok Screwup

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Nike (NKE - Cramer's Take - Stockpickr) and Under Armour (UARM - Cramer's Take - Stockpickr) just "got lucky" because Reebok, which belongs to Adidas (ADDYY - Cramer's Take - Stockpickr), "screwed up" and cut down its advertising, Jim Cramer told viewers of his "Mad Money" TV show Thursday.

However, market players cannot own both stocks because Cramer said he believes in diversification above all. He said he's not going to push one stock over the other because they're two different types of stocks that are not competitive, even though they are in the same sector.

Although both should benefit from Reebok's marketing blunder, Cramer warned people to choose carefully. While Nike is the conservative play, Under Armour is the "more aggressive high-risk, high-reward stock," he said.

Cramer told viewers to figure out what type of investors they are and which stock they would be more comfortable in. Nike is a lower-multiple stock and is "strictly playing defense," by trying to keep the revenue it has, he said.

On the other hand, Under Armour is on the offense, Cramer said. It is a high-multiple stock, and if it doesn't mess up, people should win big with it. But if it does mess up, people who own it will be in the House of Pain.

When it comes to shoes, though Under Armour is only in the football-cleats game, it has already taken 24% of the market share, and Nike has lost 13% of the football-cleat market, he said.