Cramer's 'Mad Money' Recap: While Nike Sleeps

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"Under Armour (UARM Quote) is waging a guerrilla war against Nike (NKE Quote), against the unprotected Reebok and against the unpopular Adidas," Jim Cramer told viewers of his "Mad Money" TV show Monday.

Under Armour is the sports-gear company that Cramer has vacillated about in the past, but no more, because he's just realized the greatness of Under Armour's management.

"It is a buy to the ninth power," he said.

However, Nike is "trying to keep Under Armour down," Cramer said. But either way, Under Armour has been coming into the niche markets and taking them over because of the power of its brand, Cramer went on to say.

First the retailer conquered the football-cleats market earlier this year, then it was raking in money with the hunting-apparel market, and now it has entered the ski market by selling thermal underwear, he said.

"Nike can do nothing but lose market share because the Under Armour brand is too powerful," Cramer said, adding that the company also knows not to take on too many niche markets at a time so that it can focus on them one-by-one.

The company "understands the game it's playing."

He considers Under Armour's strategy "smart": It looks for holes in a market and fills them in. By penetrating these niche markets, Cramer said the company has been ensuring that its competitors are not worried.