NEW YORK (TheStreet) -- GoPro (GPRO - Get Report) surprised investors with an $800 million secondary stock offering, causing the stock to slide roughly 4% in early Monday trading. Investors were caught off guard because this secondary wasn't expected until late December, TheStreet's Jim Cramer said on CNBC's "Cramer's Mad Dash" segment. 

The action camera manufacturer has enjoyed a strong start in the public market, with the stock up 222% from its IPO price of $24. 

Cramer, the co-manager of the Action Alerts PLUS portfolio, reasoned that the secondary offering would add liquidity the stock, since the outstanding share count would increase.

"The third quarter was really great and I think the holiday season will be really great," he said, adding that sales in China are also likely to be strong. For those reasons, investors should use this secondary offering as a buying opportunity

The stock has a chance to go back to $90 because the company sells the "product of the holiday season," he added. 

Turning to homebuilders, Cramer reasoned that Toll Brothers'  (TOL - Get Report)  preliminary fourth quarter results are good. The homebuilders look great and investors searching for a "catch-up" trade to ride into year's end may turn to this sector, he said. 

Interest rates are going to stay lower for long and mortgage applications have been steady, he said. D.R. Horton (DHI - Get Report) , which reports earnings on Tuesday, is likely to have positive commentary too. 

However, Toll Brothers is the "most inexpensive" stock in the group, Cramer concluded, adding that he likes the stock near current levels. 

Toll Brothers is scheduled to report earnings on Dec. 10. 

-- Written by Bret Kenwell

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At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.