Jim Cramer Shares His Opinion On Lululemon And Michael Kors

Speaking on CNBC's Mad Money, Jim Cramer said the quarterly report for Lululemon Athletica inc. LULU won't be a great one because the management is not good, but he would buy the stock because it won't stay independent if it continues to trade in its $40s this time next year.

He would buy half of a position before the earnings, and the other half after the earnings.

Cramer is encouraged by an activist purchase at $42 and sees a strong support at that price level.

The host doesn't, however, like Michael Kors Holdings Ltd KORS. He does not see growth in the name and would sell the stock going into the year-end.

There are better stocks to buy out there, Cramer added.