Wednesday on Jim Cramer's MAD MONEY, the loud-but-excited analyst discussed a spinoff of Hanesbrands Inc. (NYSE:HBI) fom Sara Lee Corp. (NYSE:SLE).

The question on investor's minds should be, naturally, does a spinoff make sense? To give a little background, Cramer referred back to the GM-Delphi spinoff, opining that the two auto units were too tangled to properly unwind. In this case, it may be a bit simpler; after all, he asked, does it make sense for a cupcake and meat company to own an underwear company? Nope, said he, the two units needed to be under a different roof. Can HBI make you money? Cramer says, "yes."

Hanesbrands shares traded up 2.3% to $23.18 in after-hours trading after Cramer's well-reasoned recommendation, especially after he referred back to several prior deals, including the Freescale spinoff, the Coach spinoff, and the Darden spinoff.

He did say that Sara Lee forced it to take on a lot of debt, but the company's lower margins may improve since manufacturing has been moved internationally.

In a call-in Cramer said he thinks Under Armour, Inc. (NASDAQ:UARM) is going higher. In another call Cramer said Jos. A Bank Clothiers, Inc. (NASDAQ:JOSB) is a "stay away" story.

Jon Ogg is a partner in 24/7 Wall St., LLC; he does not own securities in the companies he covers.

Sara Lee Corporation (NYSE:SLE), manufacturers of Ball Park Franks, Jimmy Dean sausage, and Sara Lee fatty baked snacks, has completed the spin-off of its Hanes division to form a separate company, Hanesbrands, (NYSE:HBI), which began trading yesterday, September 6. Current Sara Lee shareholders received one share of Hanesbrands stock for every eight shares of Sara Lee. The Hanesbrands moniker includes some very common names: Hanes underwear, made famous by Michael Jordan in his series of "you have been briefed" ads; Bali and Wonder bras; as well as L'eggs and Just My Size hoisery.

Several years ago, Sara Lee Coroporation management decided to reduce the range of the portfolio of brands that had grown to cover snack foods, beverages, as well as household and body care products, and a line of intmate and casual clothing. One does have to wonder whoever thought it was a good idea to merge fatty snacks with an underwear company in order 'to achieve transformational synergies' or some such business lunacy. Probably best not to think about the image too long.

Approximately 95 million shares of Hanesbrands stock were distributed to Sara Lee stockholders in the transaction. Sara Lee Corporation received $2.4 billion for the stock from Hanesbrands. In its first day of trading, Hanesbrands stock closed at $22.20, up $1.90, with 3.7 million shares trading hands.