Jim Cramer reveals why his Action Alerts PLUS charitable trust portfolio is initiating coverage of Johnson & Johnson (JNJ) on Tuesday. Cramer explains his reasons for liking the household name -- including the pipeline opportunities the company recently revealed at its analyst day. The company has ten early stage drugs in its pipeline with more than $1 billion in sales potential, which is part of what gave Cramer and Action Alerts PLUS director of research Jack Mohr the confidence that Johnson & Johnson will be able to grow faster than the industry over both the near and long-term. Cramer also stressed the great job that Johnson & Johnson chief executive officer Alex Gorsky is doing. He says Gorsky has a great vision and past problems of consumer product recalls are finally behind him. In order to fund the new position in Johnson & Johnson, Cramer said he is exiting his position in Merck (MRK). Cramer said he was hoping Merck would be more open about an Alzheimer's drug it has up its sleeve, and the company's failure to do so has made him a bit nervous. Still, the exit of the Merck position is less about losing confidence in the company fundamentally and more about seeing considerably more growth and potential upside in Johnson & Johnson.

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