"If I had to own something remotely related to autos, which I'd rather not, I'd probably own this one. It's the best house in a bad neighborhood." "Cramer's 'Mad Money Lightning Round,'" 6-15-09

"People want Sears (SHLD) because they want to play companies that will benefit coming out of a recession and are still solvent. They want Johnson Controls (JCI) because they need some play on autos because the auto market is coming back." ("Saftey Last," 6-1-09)
...
Cramer offered another trade on the back of General Motors' (GM Quote) bankruptcy filing: Johnson Controls (JCI Quote), which he said is a "very well-run company."

Cramer said that Johnson Controls is a play on a turn in the auto industry. "I've been waiting for the auto industry to slow down," he said, to a point where people fill the risk is out. (Cramer's "Stop Trading!" 6-1-09)

Outperform - Price 17.49 on April 21
by Baird Securities

There could be some upside to our fiscal 2009 earnings estimate of 5 cents. The March quarter was cash-flow-positive for the first time in six months [...with more than] $2 billion in excess liquidity intramonth. Outstanding commercial paper at quarter's-end was about $400 million, with no borrowings on [revolving credit]. Return to profitability [is expected] in the June quarter. The automotive business is expected to have operating losses of less than $50 million, with break-even reached in the September quarter. Market cap: $9.6 billion.

On the stocks of companies whose managers have retracted earnings guidance, buy straddles. This entails buying a put and a call that have the same strike price and expiration date. If the stock price rises or falls, the straddle could increase in value. This is a good strategy for Molex (MOLX), Johnson Controls (JCI), Applied Materials (AMAT), Abercrombie & Fitch (ANF), Leggett & Platt (LEG), Fortune Brands (FO), Coventry Healthcare (CVH), BJ Services (BJS) and Union Pacific (UNP).

Auto Parts Mfg exposure

From a recent Mad Money show:"That's the best house in the auto neighborhood, but it's still autos so that means I'm selling it."

From a recent Mad Money show:"No, if it has anything to do with cars, it's gotta be sold. "

Largest position in my portfolio. Am buying more for when the auto, battery and business interiors come back. Actually, I think it's just the auto interiors part that is holding this down. When the auto's recover JCI will take off. The good thing about JCI, it doesn't depend on one automaker. If one goes under sure they might lose some contracts but people will come back to buying auto's from somake maker and there will be a high probability that it will have interiors from JCI.

From a recent Mad Money show:"This company is, in the end, so linked to autos I can't recommend it. "

Cramer: How to Trade Eaton:
This is a great company, but proceed with caution, says Jim Cramer.


Click here to watch the video.

This is similar to GROW. I still like the company, it just isn't getting any love. Losing 50% really isn't help my love affair with this stock; but unlike Grow, I feel this one can bounce back. Unfortunatly, the Street is ignoring JCI's other function and focusing on just the car element.

Gone down in spades by never sold

Losing big time

above historic highs