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Closing an Industrial Position

We will take the remaining profits and look to buy more shares of another industrial.
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After you have received this Alert, I am going to sell the remaining 200 shares of Caterpillar (CAT) . I am now out of this position, as the stock has rallied up over 30% from where I initially started buying, and I will take the remaining profits here, at around $37.45 a share. I believe the company has near-term earnings risk and prefer my new industrial name, Honeywell (HON) .

Honeywell is a more diversified industrial company, and it has undergone an extensive restructuring program that will lead to significant cost savings over the next several years and help to buffer earnings until demand improves. Management has recently lowered earnings expectations, but as the economy improves, the company should see signs of demand earlier than Caterpillar does, given Honeywell's early-cycle end-markets.

With that in mind, I will continue to build my 1,200-share position in Honeywell over time.

Regards,

Jim Cramer

Click here to trade alongside Cramer!http://www.thestreet.com/staticFull/aap-td-ct-offer_alert.html

DISCLOSURE: At the time of publication, Cramer was long CAT and HON.