Cramer was bearish on
Breaking up is easy to do, Cramer told viewers, at least when it comes to stocks, and most of the time, it's profitable as well. That was Cramer's take on
(PKI - Get Report)
the human health and diagnostics company that could unlock tremendous value by splitting itself up.
Cramer explained that PerkinElmer is actually two companies in one. It has a human health business that accounts for 56% of sales, and also an environmental business. He said the human health and diagnostic business is growing fast, but that growth has been masked by the environmental business that is slower growing and with smaller margins.
When the company last reported, PerkinElmer saw its shares decline by 12%, despite the fact that 85% of the company was actually in pretty good shape. The remaining 15%, however, saw sales fall by 25% thanks to weakness in Europe and Japan.
Cramer said that based on recent takeovers, PerkinElmer's human health business is worth $1.8 billion. Its diagnostic business adds another $3.3 billion, for a total of $5.1 billion. The markets currently value the company at just $4.4 billion.
But wait, there's more. Cramer said the environmental business, despite being sluggish, is still worth $1.9 billion -- meaning PerkinElmer should be valued at $7 billion, or a 59% premium from where it trades today.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer asked the question, "What if Europe has finally hit bottom?"
Is it silly to think this ever-declining continent could finally stabilize? Cramer said that's exactly what management at Eaton,
said on their earnings calls, and smart investors should be taking notice.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC
-- Written by Scott Rutt in Washington, D.C.
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