Editor's Note: This was originally published as an alert at 10:06 a.m. EST on Dec. 17 to subscribers of Action Alerts PLUS.

Tyco (TYC:NYSE) has been in the midst of a gradual recovery since Ed Breen took over the helm two years ago. The stock is up 30% year to date, but I believe it has more upside potential from here, and I'm going to buy 2,000 shares after you read this.

The company always had an attractive operating model for a conglomerate and is a market leader in areas from health care and electronics to home security. It's been a tall task for Breen and his team to try to fix the mess that Dennis Kozlowski left, but they've been successful so far.

After a sweeping round of cost-cutting and debt reduction, Tyco once is again focused on organic growth. I believe the company can grow profits 20% in fiscal 2005, and earn north of $2 a share. At $34.80, the stock is attractive. It trades at 17 times earnings, and I believe Tyco can trade into the $40s over the coming months.

To make room for Tyco in the portfolio, I'm going to sell my final 2,500 shares of Kimberly-Clark (KMB:NYSE). The stock has recovered about 15% from its October lows. But Procter & Gamble (PG:NYSE) continues to compete fiercely in the consumer paper products business. I'd rather take the small gain we have and roll these funds into a stock that I believe has better upside potential.

P.S. One of the keys to successful investing is a smart portfolio strategy. So you might want to consider a FREE TRIAL to TheStreet.com Action Alerts PLUS, where I trade my own $3 million portfolio and advise you on my every move before I act.
At the time of original publication, Cramer was long Kimberly-Clarke. He currently is long Tyco.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column to jjcletters@thestreet.com. Listen to Cramer's RealMoney Radio show on your computer; just click here. Click here to buy Cramer's latest book, "You Got Screwed!" Click here to order Cramer's autobiography, "Confessions of a Street Addict."