Cramer: Walk away from Dell, nothing but trouble

(Click for video linked to a searchable transcript of this Mad Money segment)

"Memo to Carl Icahn and Michael Dell for that matter, walk away from Dell," said Cramer.

Largely the Mad Money host thinks the $14 buyout offer from Icahn and the $13.65 offer from Michael Dell and partners is too much. "I don't think the company is worth it," Cramer said.

In fact, Cramer's taken a long hard look at the business and if future potential is factored into the equation -- he doesn't think the company is worth much at all.

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Largely the Mad Money host cited 5 serious challenges:

1. The decline in PC demand is too steep. "The bread and butter of personal computer is going to decline by more than ten percent this year and I think it will be even worse next year," Cramer said. Largely the Mad Money host just thinks the industry is shrinking too quickly for all the major players to thrive.

2. People won't pay up for significantly more memory. "Unless you work at NASA and want to put a man on the moon, you don't need that power." Therefore Cramer doesn't see new microchips as a big selling point.

3. Dell isn't a service company. "It's absurd to believe that Dell's server business coupled with its big service contracts can be the bedrock of a new Dell," Cramer said.

4. Hewlett-Packard could crush Dell. "There is absolutely no doubt in my mind that Meg Whitman could simply give away PCs. If she did, it would wipe out Dell in a two-year period." Not good.

5. Demand from Asia is slowing. "SAP said that demand from China and Asia for enterprise hardware and software has slowed. The biggest growth market intechnology has really gotten hammered in the last few months," Cramer said. If Dell needs anything, it's demand for PC's to increase not slow down.

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All told, Cramer thinks Dell is challenged. Seriously challenged. In fact he thinks headwinds are so strong, he's not even 100% certain that Dell can survive as a standalone company.

"As far as I'm concerned no one should want to be stuck with this company. The outlook is that bad. Really"

Call Cramer: 1-800-743-CNBC

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