Im jim cramer. Welcome to my world. You need to get in the game. Firms are going to go out of business, and hes nuts. Theyre nuts. They know nothing. I always like to say theres a bull market somewhere. Mad money, you cant afford to miss it. Hey, im cramer. Welcome to mad money. Welcome to cramerica. Other people want to make friends. Im just trying to save you money. My job isnt just to entertain but to educate you. Call me at 1800743cnbc. Todays action frankly was even more bullish than the averages. Dow gaining 44 points. Nasdaq up. 04 . Why . Because it seemed that everything was levitating at t the same time. All aboard even transport going up at the same time as oil service stocks. They should get smashed. Thats not what happened. The bank stocks were up. We got a happy session where everything rallied. Buyers think that everythings getting better. Courtesy of a powerful worldwide recovery. Consider it a microcosm for the glorious year already thats 2013. Already one thats taken the s p 500 to fabulous five year highs. Next week, were going to find out what deserves to go higher as earnings season begins. We completed a fiveyear study of when the most money is made and the least money during the calendar year. The sharking shocking finding . First quarter earnings next week may be the single most difficult and challenging moment of the whole year to make money. The cross currents created by the need to temper enthusiasm. The season will be strong Fourth Quarter which we get from technology and bank stocks could mark a peak in earnings. They give you pause before you go up. How many days to pitch rs and catchers . I cant wait. When you consider the fiscal cliff worries and the debt ceiling over hang gives people reason to be down beat in order to reset the bar so it can be easily beaten. [ boo ] it could make the earnings season the most difficult one in years. [ ghost ] that said, were not quitters. We give you a game plan. Well be listening for more than just quarterly reports next week. Starting monday well try to get a read on one of my favorite groups and not that economically sensitive. The bio techs. Were doing it courtesy of the jp morgan pharma conference. Its the most important conference of the year. I love this group so much. The health care con fab. What are we listening to . You know what i want to hear . Cellgene speaks at 11 00. They are located in summit new jersey and so am i. We stuck with this one through thick and thin. How many times did people desert it . We havent. I think its going to be a great 2013 story. Then at 2 30 we look forward to hearing from a favorite who defied all expectations withdrawing the promising als drug due to lack of efficacy. The stock barely dropped. How does that happen . Simple. I think there is more to like there. Tuesday we get reports from two of my favorite companies, but not necessarily my favorite stocks. There is a difference. First monsanto in the morning. I always love it. Looks like the Company Michael clayton. Its basically a Bio Tech Company for seeds and a good one helping to feed the world. Its got all sorts of drought resistant, bug resistant seeds to give farmer a better output than anyone else. The stock rallied huge. I do fear a pull back. No matter what they say. Whats the opposite of monsanto . The opposite. Alcoa. The stock has been so poor its hard to imagine it going down anymore. Alcoa has so much going for it. Turbines, autos, construction, aerospace. But it has to deal with the glut of the raw product aluminum. That can constrain progress as the ceo has done his very best to improve the company and its balance sheet. I wouldnt bet against alcoa. No matter what i need you to give a listen. Clause tells you how each market is doing. Hes brilliant and tells it to you in a witty way. Its the drol east german sense of humor perhaps. On wednesday well take a break from earnings and listen to walgreens symbol wag. The drug star, the cohort has been significant of late. Im waiting for the multi Country Initiative now that the tiff with express scripps is in the rearview mirror. Given the strength of Global Markets its go International Strategy might be just right for investors. By the way, the stores, i would sleep in them if they let me. Theyre fabulous. I like the story. Thursday, oh, boy. Oh, man. Claymation death match coming. Herbalife telling you why they are dead wrong for shorting it. To be fair it has to put up great numbers for years now. The ceo might be the most combative and passionate of any executive. I bet he takes the offensive against the most motivated to destroy a company which is the campaign by short seller bill akman to derail herbalife. Where do i come down on this dispute . Where do i fall . As i have said to you many times, i do not participate in battlegrounds. This is perhaps the biggest battleground i have ever seen or certainly the big pest i have seen televised. Its audi frasier. There will be a rumble in the jungle that i want front row seats for. But i would never tell you to get into the ring when the heavy weights are swinging. I get news about herbalife and herbal death from Herb Greenburg. [ rim shot ] we hear from chevron, not as fun, with an interim update on thursday. This company is one of the worst performers of the dow. My trust owns the stock. The smart move is to wait for the company to talk and buy the stock after it gets hammered which has been the case forever. The updates appear to sound more bearish than they are. Finally, friday, listen up. I have a thesis going here. The most misunderstood stock of the last few months. Thats wells fargo. You think its a Stagecoach Company if you listen to the bears. We always hear about management. They talk about how a crisis is a terrible thing to waste. Meaning that ceos are supposed to figure out how to use the dow to take market share, whip the competition and become dominant. Thats what wells fargo did during the recession. The government was desperate to save the Banking System and allowed wells to go from 10 of the Mortgage Market to more than 30 . Frankly thats perhaps the most outrageous and outstanding and astounding market share grab i have ever seen in my career. No bank has been able to have that much concentration in the history of modern banking. Wells has been spending the build out from a Regional National brand taking share in every market it touches. Once it gets its hands on your mortgage it will expand to take over all your banking business. Cross marketing is the hallmark of the great bank that Warren Buffett continues to buy shares of in the open market even as hes the largest shareholder. For all that wells has become a hated bank. Critics talk about runaway expenses shrinking the interest margin. Severe overvalue litigation. If Interest Rates are going higher which i think they are. Wells fargo might be the greatest investor atm of the era. The reach is magnificent, management superb so i continue to pour money into it from my Charitable Trust. Its fashionable to downgrade the stock as too expensive. They focus on citigroup, sun trust. While i think citi can go higher and sun trust is improving ill go with best of breed. So i will say once again analysts will be disappointed with the quarter for all the reasons i outlined. They will be. So i want you to buy wells fargo after it gets hammered. For the desire to dominant and the up front spending it needs to do to become the National Bank it needs to be. Bottom line. This is a treacherous time to act but a terrific time to listen. If i hear anything that could be wipe for investment after the smoke clears ill let you know on the show. Trading before earnings not going to happen for me in 2013. It shouldnt happen for you either. I will go to johnny in california. Its johnny. Caller booyah, cramer. Ive got to ask you. What the heck is going on with ulta . Today it reaffirmed the earnings per share and had a great increase in same store sales. I heard Herb Greenburg saying to keep an eye on the same stores and insider selling. Is this a great buying opportunity or should i throw it to the dogs . I said the stock would be great for last year. It was a great stock last year. Now the expectations are so great even when thing they say things are great people dont think its great enough. I dont want to be on the other side of greenburg. I fear ultimately ulta will run out of room to expand. Herb went to an ulta and it was empty. There is more to it than that, herb. I respect the boots on the ground work. Ulta may be too high. No need in 2013 to play with the ulta fire. Mike in my home state of pennsylvania. Mike. Caller big booyah from the university, jim. My kpe is exxon. It proceeded with a 14 billion canadian oil fuel first production scheduled for 2017. Do you think this is a good longterm buy . I was surprised how poorly the stock performed last year. The Production Growth isnt there. Be unusual for it to underperform again. But exxon isnt my favorite. If you want a stock with oil, go for the chevron. Our motto for 2013 listen, dont trade. Wait for the smoke after the earnings to clear. Then we can do some buy, buy, buy or sell, sell, sell. Stay with cramer. Announcer coming up, breaking mad . Want to stay one step ahead of wall street . You have to know where to look. Cramer spotted a diversified industrial that provides everything from bucket seats to batteries. But its breakup value could provide a real charge to the stock. Get the details next. Later, modern miracle . From social to science and personal to professional, this tech spec is at the center of some of the biggest trends of the market today. So should you hit the buy button on this communication kingpin . Cramers downloading the data. All coming up on mad money. Announcer dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Tweet cramer, madtweets. Send jim an email to madmoney cnbc. Com or give us a call at 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. There are no sure things in this business. But every now and then you will find a company that has the ability to unlock a ton of value for shareholders simply by snapping its fingers and deciding to break itself up. That was easy. I have given you this breakup spiel before and i will do it again. We have empirical proof that breakup stories work. Back in december we went over the 13 breakup stocks i recommend over the past two years. They outperform the s p 500 by 600 basis points which is genuine wall street gibberish for 6 . Hallelujah [ gunfire ] when i see a company that can be split into Component Parts to create value i will bring it to your attention. Courage management do the right thing by you the shareholders. Tonight ive got another one for you. This is a company well, thats thought of as an auto parts supplier though its a multi industry player. Im talking about Johnson Controls. [ fan fare ] jci for the home gamers. Johnson controls didnt perform well last year. [ crying ] it was down 1. 8 . 2012 was a roller coaster for them. They surged to highs of 35 in mid january before falling to the lows of 20s low 20s. Then recovering after a positive analyst to end the year below where it started. Thats a roller coaster like the kraken. Great ride. 31 and change, start to finish. 2013 can be better for Johnson Controls. I believe the company could be worth a lot more if its broken up. Right now jci has three main segments that each account for roughly a third of the company profits. First there is the companys building efficiency business. Heres slang, hvac heating, ventilation and air Conditioning Systems along with Building Management and security systems. Second Johnson Controls has a big auto a supply biz where they make interior systems for the car like instrument panels, information displays. Especially seating. Third the Company Makes batteries. Both oldfashioned lead acid car batteries and newfangled lithium ian batteries. For years Johnson Controls has been trying to move into areas away from the core auto parts business because auto supply is a tough business with a lot of competition. Thats why the Company BoughtYork International back in 2005. Getting to that hvac business, the air conditioning. Meanwhile within the auto biz Johnson Controls has been buying specialty component manufacturing with strong franchises in order to become more vertically integrated. While the moves allowed the company to take share the stock just doesnt seem to get any credit at all. Lately Johnson Controls has been hammered by a series of weak quarters. Back in december the company had a positive analyst day where the forecast was low single digit revenues and Earnings Growth that may not sound hot but the street was looking for the numbers to be flat. I believe the new targets can be hit which means the stock could be worth owning even if management decides to not take my advice about breaking up the company. Johnson controls has been breaking itself up. They have been totally against this posture. This is not like tomorrow you wake up and say they were working on it. They have been gechbs it but they need to open their eyes and do the right thing for shareholders. The company has three businesses that dont belong under the same roof. What the heck . Did heating, ventilating and air conditioning have to do with car seats . Batteries . Come on. I dont see synergy there. If Johnson Controls were to break up you get three companies that could each focus on whats right for themselves. Jci spent years to get away from the weakness in the auto parts business. All they have done is allowed that to taint the rest of the company. You split it up and the battery and heating ventilation and air conditioning businesses will get much higher valuations. Right now Johnson Controls, neither fish nor fowl. Its not a pure play on anything. That makes it hard for investors to get their heads around. If you break it into separate pure plays in Different Industries each one would get a lot more love from wall street. We have a fabulous break up of American Standard just six years ago. Fred post, the ceo, recognized that like Johnson Controls the parts were worth more than the whole. He split it into kitchen bath, vehicle controls and, like cji, heating, ventilation and air conditioning. It was a huge win for shareholders. Hallelujah it will work here, too. Right now jci trades at 12. 5 discount to other companies we know and love like eaton, honeywell. At least on an enterprise basis. How much more could Johnson Controls be worth if it is break broken up . Based on 2013 numbers it turns out the sum of the parts is equal to where the stock is now. Why do i believe the company should break up . Using 2013 numbers is the wrong way to do the analysis. [ buzzer ] one of the key reasons for why Johnson Controls should be split up has to do with how each of the resulting companies would be valued. For example the Building Efficiency Division with heating ventilation and air conditioning is known as a late cycle business. This means as the economy starts to pick up speed and we see more Construction Activity sound familiar . This business will earn more money. In other words if you value the hvac business on the out years, what it could earn in 2015 or 16 its worth more than if you value it based on this years numbers. If it were an independent company the people who would be buying it would be more like ohly to value the stock based on the out years. Easy for them. The same goes for jcis battery division. The earnings down the road should be bigger than the earnings now. If it were an independent Company People buy based on what it could earn in the out years. They piece it together. Even the auto parts business is highly cyclical. With the weakness in europe its not doing so hot. If you believe in worldwide recovery as i do, this division would get more credit for earnings in the out years as an independent company. When you amalgamate the businesses the way Johnson Controls is doing now nobody wants to value it on 2015 or 2016 numbers. Its too risky and hard to figure out. You say, listen, Johnson Controls, way too hard for me. If we use the out years, say 2015. Jcis Business Efficiency segment, im calling it 12. 8 billion. Battery, 13. 3 billion. Auto business, 8 to 8. 3. Add it up. Subtract the debt and you have a 31. 2 billion dollar market cap. Translation, 45. 78 share price. Because we are using 2015 numbers give it a hair cut. Discount the fact that the numbers are a couple of years down the road. So Johnson Controls could go to [ fanfare ] 39. 80. Call it 40. A 20 premium to where it is now. 27 . Bottom line, some companies are are worth more apart than together. Johnson controls could have a better year in 2013 than in 2012. The year would be better still if jci would break up. As we know from 2012 breaking up is surprisingly easy to do. I want to go to mike in new york. Mike. Optimistic booyah from new york, mr. Cramer. I hope some of the money makes its way into the pockets from the sandy relief. Boy, so do i. My Charitable Trust is contributing. I agree with you. Caller we could use it in the pockets. Two questions regarding adt. They went public in october. I got them at 3