Cramer’s 113 year old growth company

(Click for video linked to a searchable transcript of this Mad Money segment)

When you think of a growth company you probably think of some shiny new tech company, don't you.

Cramer knows.

He also knows there's a good chance you think a growth company should be in business for a decade or less, certainly not a century or more

And if that company is largely involved in selling apparel, you probably don't think of growth at all.

But Jim Cramer thinks that would be a mistake.

"Nordstrom may be the best 113 year old growth company I've ever seen," he said.

Jpa1999 | E+ | Getty Images

That is, Nordstrom is working aggressively to grow its online business, and that's a strategy that Cramer likes very much.

"It's one of the fastest growing dotcoms in its industry," Cramer said, "and they're spending a lot on technology to get out front, even more."

"Our capital spending over the next five years should total $3.9 billion, said CEO Blake Nordstrom during an interview on "Mad Money". And out of that money $1.2 billion will go toward technology."

Not only does Blake Nordstrom see opportunity online but he believes the high quality service for which Nordstrom is famed can be translated over the Internet. "There is such a thing as fine service online," he said. "It's about a great site that's easy to navigate and a supply chain that can deliver quickly."

Cramer believes the strategy should payoff in spades. Of course the question becomes, when will it payoff.

Read more from Mad Money with Jim Cramer
Cramer's 5 building block stocks
Hedgie checklist for intrepid investors
Baffled by biotech? Try this stock!

"I see a company that's worth more than $11 billion," Cramer said, referring to the market cap, "but it's been a frustrating stock to own in part because Nordstrom is spending so much on technology." So far the Street has been unwilling to reward the potential opportunity. .

Nonetheless, Cramer believes the potential opportunity is sizable. "If there is such a thing as a 113 year old growth company it's Nordstrom," Cramer added. "If I'm right, then this is one cheap stock."

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer

    Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.

Mad Money Moments

Cramer's New Book