NEW YORK (TheStreet) -- TheStreet's Jim Cramer took a look at Macy's  (M) earnings report, as well as the recent ruling between Starbucks (SBUX) and Kraft Foods Group  (KRFT), where the the former will have to pay Mondelez (MDLZ) (a spinoff of Kraft) $2.7 billion for early termination of its distribution deal. 

The rapidly growing coffee brewer Starbucks has enough cash on hand, where the ruling doesn't seem to matter to the stock price, Cramer suggested. 

With that being said, he called the ruling a "travesty," adding that it should have been for no more than $1 billion.

At time same time, Cramer acknowledged that if shares were to sell off below $79 -- which doesn't seem likely -- it would a great bargain for a solid growth stock. 

Turning to Macy's, which topped earnings per share estimates of 39 cents by 8 cents per share, is "the most chronically undervalued stock in the world," he said. 

While investors and the media claimed the company's management was negative about its own business, Cramer argued that that wasn't the case. Instead, they were just worried about transitioning during a weak month. 

He added that October was a strong month, with a cold New York City -- which bodes well for Macy's. 

Cramer concluded that he likes the progression at the retailer and added that Phillips-Van Heusen (PVH) and V.F. Corp. (VFC) are "logical plays off Macy's."

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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