Cramer's 'Mad Money' Recap: Merger Monday Is Back

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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.

Executive Decision: Tom Quinlan

In the "Executive Decision" segment, Cramer spoke with Tom Quinlan, president and CEO of R.R. Donnelley & Sons ( RRD), a stock that's popped 25% since Cramer first recommended the company as a turnaround story a little over a month ago. Shares of Donnelley currently have a 6.5% dividend yield.

Quinlan explained that the 150-year-old Donnelley is most known for its phone book and catalog printing business, but over the past 13 years the company has moved well beyond catalogs, which now account for less than 30% of revenue. Donnelley is providing services such as quarterly financial reports for companies and mutual funds as well as printing boxes and insert materials for products and even printing RFID tags for inventory management systems.

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