This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

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

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 ___.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.18 0.00%
FB $117.43 0.00%
GOOG $692.36 0.00%
TSLA $232.32 0.00%
YHOO $36.01 0.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs