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NEW YORK ( TheStreet) -- Merger Mondays are back, Jim Cramer told "Mad Money" viewers Monday, and that's a validation to all those investors who've felt as he has, that stocks remain undervalued.
Why are mergers important? Cramer said it's because mergers are awe-inspiring, making some shareholders instantly richer, while at the same time making the short-sellers rethink their positions. That makes mergers, like the market saw today, great news for every investor. Mergers may have seemed lost over the past few years, said Cramer, but today may be the start of a new trend.
Cramer said the Omnicom (OMC) merger with Publicis (PUBGY) makes a ton of sense, as the new ad giant will have the wherewithal to stand up to the new kings of advertising, mainly Facebook (FB) and Google (GOOG). Two old-school ad giants cannot stem the tide of ad dollars flowing into these new mediums, he said, but it can certainly level the playing field.Then there's the Perrigo (PRGO) acquisition of Elan (ELN). Cramer said this deal appears to only allow Perrigo to get lower tax rates by merging with the Irish-based Elan, but in the end, higher earnings no matter how they're derived, will be a win for Perrigo shareholders. Finally, Cramer said the merger of Hudson's Bay with Saks Fifth Avenue (SKS) is the most logical of the day. He noted that as Saks continues to close many of its lesser performing stores, those locations would be a perfect fit for its upscale, but not quite as upscale as Saks, Lord & Taylor stores. Cramer called the deal a big win for Saks shareholders that had an $11 stock last week but now own a $16 stock this week.