Cramer's 'Mad Money' Recap: Stick With Skechers

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The retail sector is still hurting, but "one segment of retail that can really buck the trend is footwear," Cramer told his "Mad Money" TV show viewers Friday.

And Skechers(SKX Quote), he said, is a good speculative stock.

Cramer said it could join Deckers (DECK Quote) and Crocs (CROX Quote) in a series of shoe companies with unexpected success.

Skechers recently beat earnings estimates by 9 cents a share, and same-store sales were in the high single digits. Domestic wholesales were up 14%, and international sales were up 36%, with triple-digit growth in the U.K.

Even with a good quarter, Skechers delivered a low guidance. Cramer doesn't mind this because that's why it makes the stock a speculative play. Besides, the company could be "playing the Apple (AAPL Quote) game," of overdelivering on low expectations.

Skechers is priced at 24 times next year's forward earnings, and trading at less than its growth rate.

The company has had spotty performance in the past, but Cramer noted that a company doesn't have to go from good to great to make investors money: "We're looking for bad stocks that may have turned the corner and become good."

If Skechers keeps growing and becomes more profitable at the margin, its stock will definitely rise, Cramer said. "I think Skechers is just beginning to run."

Mitt Summit

"Sometimes it isn't what happens on Wall Street" but "what happens on Pennsylvania Avenue" that can make people mad money, Cramer said. For this reason, he welcomed Republican presidential candidate Mitt Romney to the show Friday.