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[video] Jim Cramer Quick Take: Buy Johnson Controls Now

Stocks in this article: JCI

NEW YORK (TheStreet) -- Johnson Controls (JCI) had its analyst meeting yesterday and TheStreet's Jim Cramer and Stephanie Link, co-managers of the Action Alerts PLUS portfolio, were happy with what they heard.

Cramer said JCI is very undervalued and is one of the portfolio's largest industrial positions. 

Link added that the stock is a "big-time" buying opportunity at current levels. The new CEO, Alex Molinaroli, is setting expectations low enough so JCI can "beat and raise" estimates next year, she said. 

The stock could hit $65 or $70 "in a heartbeat" if management were to break up the company, according to Cramer. He added that shares could go even higher if JCI shed some of its underperforming business segments. 

Link said management is focused on diversifying the business and shifting away from automotive and into HVAC and energy efficiency. The move should allow the company to achieve higher margins. 

Link added that JCI's cash flow will be better than expected, providing the company with more flexibility to buy back shares and examine possible acquisition targets. 

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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