The company first came public in 2015. At the time, Cramer did not like that Ollie's was backed by private equity firm CCMP Capital Advisors, which owned 59 percent of the company.
"I never like to see that level of private equity ownership because it means you could get slammed by a tsunami of selling as these guys decide to take profits," Cramer said.
In recent months, two waves of private equity block sales hit Ollie's. Cramer interpreted that as a good sign, because the last block sale represented the remainder of CCMP's position. Private equity has now cleared out.
Ollie's CEO Mark Butler still owns approximately 20 percent of the company, which encouraged Cramer. Unlike the private equity positions, he hasn't taken profits, even though the stock has risen so much this year. It told Cramer that the CEO believes it has more room to run.
More importantly, without the private equity overhang, Cramer could focus on the fundamentals of the company. He found that it is doing very well, with recent results showing higher-than-expected revenue, expanding gross margins and steady same-store sales growth. Even better, it raised its forecasts.
Ollie's plans to expand this year, opening 28 to 32 new stores, and it stated that new locations continue to perform in-line or above expectations. However, after a big block sale earlier in the week, the stock now trades where it did before it reported earnings, which Cramer noted is a great entry point for the stock.
"The pesky private equity guys are out. That means the time to buy Ollie's has arrived … I know, if this is the best retailer I can find, that doesn't say much about retail right now, but I think it says something about Ollie's, it's the one that's still working in a suddenly very difficult retail environment."