Jim Cramer's Stop Trading! Penney Shines

A 3% selloff presents a huge buying opportunity in J.C. Penney (JCP Quote), Jim Cramer said Thursday on CNBC's "Stop Trading!" segment.

Cramer said that despite what Wall Street seems to think, J.C. Penney is becoming the store where you shop if you want to "dress to kill." Cramer cited a deal in which Polo Ralph Lauren (RL Quote) will design private-label clothes for sale exclusively in JCPenney stores.

Penney's management has its "eye on the ball," Cramer said, adding that investors should "buy it every time it comes in 2 or 3 points."

Cramer also likes Whole Foods (WFMI Quote) off Wednesday night's plan to buy struggling rival Wild Oats (OATS Quote). Cramer said the deal will rid Whole Foods of a nettlesome price-cutting competitor, boosting margins and giving management the opportunity to put up a couple good quarters after last November's disappointment.

Cramer said Wednesday's bullish comments from Analog Devices (ADI Quote) mean the semiconductor stocks have room to run. Cramer said CEO Jerald Fishman's comment that the inventory correction is over will mean a rally in Texas Instruments (TXN Quote), Broadcom (BRCM Quote) and even Qualcomm (QCOM Quote), though Cramer cautioned that the San Diego wireless-chip shop is "too litigious for my taste."