“It’s no secret that retailers are in trouble this holiday season,” Cramer told viewers of his “Mad Money” TV show Wednesday. However, despite the problems Cramer sees opportunity in the sector. He pointed out that 20 retail stocks currently trade at $10 or less and he picked his favorite three of the bunch. First up was Bebe Stores (BEBE). Bebe trades for under 16 times earnings and has a strong balance sheet with $3.91 in cash per share and investments, plus a $30 million stock buyback program. Second on the list was Jones Apparel (JNY). Cramer mentioned that Jones is taking market share from rival Liz Claiborne (LIZ). Also, the company has a strong partnership with Walmart (WMT) and Macy’s (MO) and the shares could be near a bottom. Finally, Cramer said he likes American Eagle Outfitters (AEO). He said the company has a strong balance sheet and is increasing promotions to bring consumers back to its stores. Cramer thinks the company will be able to easily beat lowered earnings estimates. Chat and share ideas with the best small cap traders LIVE each day free at Stocknetworkonline.com