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Forget the fruitcake, give stocks: Cramer

Monday, 16 Dec 2013 | 6:25 PM ET
Cramer's stocking stuffers Pt 1: GE and JCI
Monday, 16 Dec 2013 | 6:25 PM ET
Mad Money host Jim Cramer shares stocking stuffer stocks and discusses why he thinks General Electric is a buy as the global economy picks up speed.

(Click for video linked to a searchable transcript of this Mad Money segment)

Sure, we know Bobby wants a pair of skates, Suzy wants a sled. Nellie wants a picture book, yellow, blue, and red. But if you're looking for an alternative to those time honored gifts, Cramer has a few suggestions.

He thinks the stocks of high quality companies make the perfect present for the young or young at heart. So here at Mad Money, we're offering this simple phrase, for kids from 1-92. Although it's been said many times, many ways, stocks of solid companies make a nice gift from you.

(In this week long series Cramer will present two stocks every day. Check back regularly to see which names made Cramer's 'nice' list.)

Source: CNBC

#9 Johnson Controls

Jim Cramer called Johnson Controls a turnaround story and a bet on new CEO, Alex Molinaroli, who just took the helm at the beginning of October.

"In recent meetings he's signaled to investors that there will be changes at the company—specifically, he wants Johnson Controls to become a more diversified, global, multi-industrial leader with better capital allocation and less dependence on the auto market," Cramer said.

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Cramer thinks the company could be about to embark on either a restructuring program or a spin-off, either of which would unlock shareholder value.

In addition, as a maker of auto parts, Cramer sees Johnson Controls as a long-term bet on global recovery. And he added, "Just last month the company boosted its dividend by 16%, bringing the yield up to a not too shabby 1.7% and they also announced a $3 billion increase to the buyback—pretty serious for a $34 billion company."

All told, Cramer believes Johnson Controls is in the beginning of "a multi-year turnaround leading to more consistent earnings and a higher multiple for the stock."

#10 - GE

In the near-term Jim Cramer thinks shares could advance as GE shifts its focus back to its core industrial business and away from its banking business, an area that burned the conglomerate during the downturn. As the transition accelerates, Cramer believes the market will reward the stock with a higher multiple, in part because it stands to benefit "as the global economy picks up speed."

And over the long-term, Cramer sees many other bullish catalysts too. "With a $229 billion backlog, I think the company can get its revenue growth up into the mid-single digits, which would be huge for GE's earnings," Cramer said "On top of that, management has some pretty aggressive cost cutting initiatives going. Also GE just boosted its dividend by 16% on Friday and the company already has a $10 billion buyback underway, and I could see that expanding over time, too, as the cash flow rises," Cramer said.

(Check back tomorrow for two more names that made Cramer's 'nice' list.)

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

  Price   Change %Change
JCI
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GE
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