Cramer's 'Stop Trading!': Dell vs. Hewlett-Packard

NEW YORK (TheStreet) -- On Friday's "Stop Trading!" segment on CNBC, Jim Cramer offered up a new thesis: "There's a secular trend away from Dell(DELL) toward Apple(AAPL)," he said, with young people in high school and college making the switch.

He said he's "disliked Dell for so long I even put it in my book," so he wasn't disappointed in Dell's quarterly results. He told viewers to wait for Hewlett-Packard's(HPQ) announcement on Monday. "I think Dell's saying that PC business is bad," he said. "I don't think Hewlett's going to say that."

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Dell's acquisition of Perot, for example, seemed "desperate," said Cramer, whereas Hewlett's acquisitions "have been smooth." Also, he said, whereas Hewlett-Packard has "all these other businesses," there's "nothing proprietary about Dell."

Cramer turned to Warner Chilcott(WCRX) and its secondary last night. "When I see secondaries where the stocks is up the next day, it says good things," he said.

He said that since Warner Chilcott had bought a pharmaceutical division from Procter & Gamble(PG), he bet there'd be some analysts coming out in the next 10 days calling Warner Chilcott a buy.

"I like that story," he said, and he offered up the example of J.M. Smucker(SJM), which purchased Folgers from Procter and "reported a blowout quarter today." He said Smucker made a fortune from Folgers, and he expected the same to come from Warner Chilcott's purchase.

Wrapping up with retail, Cramer called Williams-Sonoma(WSM) a "quintessential mall stock" in that mall shoppers are willing to overpay for Williams-Sonoma merchandise that they could buy cheaper elsewhere.

"The overpay trend is back," he said, which means Ralph Lauren(RL) should not be down. "I think anything where you overpay is going higher," Cramer said, including Nordstrom(JWN) and Tiffany(TIF).

-- Written by Rebecca Corvino in New York.

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