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[video] Cramer & Link: Now is the Time to Buy Johnson Controls

Stocks in this article: JCI

The video this transcript is based on appeared on December 19.

NEW YORK ( TheStreet) -- TheStreet's Jim Cramer and Stephanie Link say shares of Johnson Controls present a 'big time buying opportunity' right now.


Stephanie Link:
Jim, let's talk about Johnson Controls, it's one of our largest industrial positions, it's down 2 percent today, the company's having an analyst meeting, there are high expectations, they were conservative just like Honeywell, just like Dover, just like a lot of the industrials. I think this is a buying opportunity big-time and I think that the new CEO is setting us up for being raised kind of the year.

Jim Cramer:
Yeah and don't forget, Get Rich Carefully, which I know you know cuz' you're in it constantly, we know this stock is very undervalued and they could break it up and get to 65/ 70 in a heartbeat. I think it's worth more actually, look they've got so many different division, they get rid of some ones that are underperforming. This is driving me crazy. A stock will come out with an analyst meeting, we love an analyst meeting. And because the stock is up and they reiterate that everything's gonna be great, maybe better next year, it was on top, I'll take profit. We often talk about, well Jim this stock is up 'x' going into the meeting. If Johnson Controls had been at 44 it would be, it would have gone up 10 points. But the fact is it's moved up a lot so people say 'this is why I bought it.' That is silly. This is one you gotta circle right back on.

Stephanie Link:
Yeah, because the story is just beginning. This is a new CEO, he's diversifying the company, he's going to get away from auto and automotive, and go into HVAC, energy efficiency and that's higher growth, higher margin business. And the other thing he said today was cash-flow. Cash flow is going to be better than expected. So guess what? Now he has cash to do buybacks, also to make acquisitions to grow HVAC, and to grow the growth with your part to the business. So, I think that's a win-win.

Jim Cramer:
Remember the guy comes in on Ingersoll, everyone thought Ingersoll was dead, dead as a doornail, 38/40. And then look what happened okay, and each time there were doubts. The doubts are about people taking profits, and I think that those were taking profits at Johnson Controls were the same people who took profits in Eaton, at 61.

Stephanie Link:
Right so we'll be buying more when we can.

Jim Cramer:
When we can, let me check.

Stephanie Link:
We're restricted right now, but we definitely will. Thanks Jim.

At the time of publication, Cramer was long ___.

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