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The Cult of Women’s Athletic Apparel?

Wednesday, 22 Sep 2010 | 3:08 PM ET

Given the focus on women’s footwear with stores like Lady Foot Locker, what took so long to focus on apparel? Lululemon’s success in doing that has turned to be—and continues to be—“an amazing story,” Cramer said Wednesday.

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The “Mad Money” host noted that Wednesday was the first day that shares of Lululemon traded lower since its strong quarter, reported Sept. 10. He took it as a sign that “people are underestimating the power of this brand” and stopped short of calling Lululemon customers a cult. That popularity right now seems to place a higher value on the stock than Wall Street does.

“The brand is bigger than the market cap,” Cramer said. “And I like it.”

Under Armour is another company moving into women’s athletic apparel. Cramer said he had been “cool” on both UA and Lululemon because their earnings at one point weren’t strong enough to warrant their market caps, but that has changed. He was decidedly more bullish about LULU, though.

Sears’ new deal to host Forever 21 stores within its own outlets is a much-needed “sign of life,” Cramer said, from the department store and retail as a whole. He praised the idea of giving over floor space to attract “an incredibly hot, younger demo.”

Finally, while Goldman Sachs this week added Nabors to its “Conviction Buy” list, Cramer thinks this stock is firmly in the “sell” column. The company is a domestic driller of natural gas at a time when overseas oil is on fire.

“I prefer every other oil-service company to” Nabors, Cramer said.

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