NEW YORK ( TheStreet) -- Jim Cramer told viewers of his "Mad Money" TV show Monday that computer-maker Dell ( DELL) is no longer a company, but rather "the punchline of a bad joke." Cramer said that today's announcement of the company's acquisition of Perot Systems ( PER) is a desperate, and incredibly poor, attempt to play catch-up to rival Hewlett-Packard ( HPQ), which purchased EDS in October, 2008. Cramer said H-P, a stock which he owns for his charitable trust,
Improving ConditionsIn the "Executive Decision" segment, Cramer spoke with Charles Bunch, chairman and CEO of PPG Industries ( PPG), to find out if the chemicals and coating business really is as good as Cramer predicted. Bunch confirmed that things are indeed better at PPG than they were just a few months ago, saying that he's seeing a gradual improvement in Asia and the U.S. He said there's been a lot of pessimism surrounding this recovery, but added that the world will eventually see light and come to embrace it. When asked about PPG's workforce, Bunch said the bulk of the company's layoffs and restructuring has been completed and he expects that a year from now, he'll have more workers on the payroll than he does now. Also on a positive note, PPGs expansion into Europe through acquisitions. Bunch said the company is ahead of its revenue and synergy plans, and the weaker dollar is helping to accelerate PPG's growth in that region of the world. Finally, when asked about the automotive business in particular, Bunch said autos in China are "on fire," while here at home, Cash For Clunkers has helped a lot to clean out inventories and spark some energy into the sector. Cramer applauded Bunch for his efforts at PPG and said the company is a buy.
Casino PlayInvestors looking to cash in on the hottest IPO of the season need to travel all the way to Hong Kong, said Cramer, where Wynn Resorts ( WYNN) is preparing to spin off 25% of its Macau properties. But Cramer said investors shouldn't invest in the IPO itself, as that involves too much risk. Instead he said he's sticking by his July 21 call to buy Wynn Resorts itself, despite the fact the stock has run up 70% since that call. Cramer said there's likely to be some profit taking in Wynn, and that will be investor's cue to buy in ahead of the IPO. "There's still room to go higher," said Cramer, but only after the hype surrounding the IPO, dies down. So what's so compelling about Wynn's Macau business? Cramer said the company plans to offer 1.25 billion shares representing 25% of its interests in Macau. That values Macau at $7.2 billion. But Wynn overall is only valued at $11.6 billion, meaning its Las Vegas operations are sizably undervalued at just over $4 billion. Cramer said he would not be surprised to see the Macau IPO rise to be worth more that the overall value of Wynn. He said he's sticking to his $90 price target for the stock, but only after an initial retracement to the $64 to $65 level.