TV Recap: Buy Dell

Cramer says the PC maker had an impressive quarter and can hit $35 a share.
Publish date:



(DELL) - Get Report

"hand over fist here," Jim Cramer said Friday on his Wall St. Confidential

Web video.

Cramer said founder Michael Dell returned to the company "for a reason. The reason is because he can fix it.

"Michael Dell's not Steve Jobs


CEO, but he's very close to it," Cramer told Farnoosh Torabi,

correspondent and host of Wall St. Confidential.

Cramer also said Dell's become a "cheap" stock. He said you have "nine months to buy it," and he believes it's headed to $35 a share. "Surprising it's up only a dollar and change," Cramer said.

Cramer said there was "some gross margin to be gained," which he said surprised him. Also, "the fact that he

Dell can have this headcount reduction tells me Dell is much more fat than I thought." (Dell, which reported quarterly earnings Thursday, also announced that it

would cut its work force 10% over the next 12 months.

Cramer said he now believes that


(HPQ) - Get Report

, which he owns for his

Action Alerts PLUS charitable trust, isn't doing as well lately because Dell is doing better.

"I'm now beginning to think that Hewlett-Packard is performing much more poorly because Dell is doing better," Cramer said. "Hewlett-Packard isn't going to go as high as I thought."

Cramer told Torabi he won't second-guess Dell's plan to sell computers at


(WMT) - Get Report

. "There are certain people who are P/E makers, and

Michael Dell is one of those, and so is

H-P CEO Mark Hurd. You either trust the man or you don't, and if you don't, get the heck out of it

a stock."

Dell, he said, is one of the few people whose judgment he won't question. Among other people he "banks with" are Eddie Lampert, despite the fact that



, a stock he owns, had a bad quarter;

J.C. Penney's

(JCP) - Get Report

Myron Ullman; Mackey Mcdonald at

VF Corp

(VFC) - Get Report


Polo Ralph Lauren's

(RL) - Get Report

Roger Farah, Cramer said.

In addition, he said if Robert Niblock from


(LOW) - Get Report

or Alan Mulally from


(F) - Get Report

"are making strategic moves, I am not going to second guess them."

Other "game-changers" on his list, Cramer continued, include Neville Isdell from


(KO) - Get Report

and Ivan Seidenberg from


(VZ) - Get Report


At the time of publication, Cramer was long Hewlett-Packard.

Jim Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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