NEW YORK (TheStreet) -- TheStreet's Jim Cramer discusses two stocks in which he sees opportunities for investors to buy.
First, he talks about Lululemon (LULU) . He says he thinks this quarter will be "better" but still "horrible" because he does not think the company is executing well.
But he put an initial position on the stock for his Action Alerts PLUS Portfolio and said $42 was the floor, at which point investors want to buy a lot more because large shareholders would kick in and say this is a great brand that is under-managed.
Therefore, he thinks investors can win both ways. He suggests possibly putting half a position on now and then buy the other half if the stock goes down. If the stock goes up, then you have a solid gain.
Cramer also expects Lululemon to be taken over because it has two valuable franchises but is too under-managed. He adds if the stock rises, then the company would not have to worry about that, but it currently trades at 22 times depressed earnings, which Cramer calls "a little absurdly low" for companies like VF Corp. (VFC) or Nike (NKE) that might want to add a new franchise to their portfolio.