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During a week that saw the stock market largely regain its footing following a lackluster August, the Club made eight trades — including exiting one chipmaker, as we further expanded our position in another. Here’s a day-by-day look at each move. Monday The week started with a flurry of trades , as we added to four positions and gave up our stake in a semiconductor holding. The Club exited Advanced Micro Devices (AMD), offloading 265 shares, at $102.35 apiece. Following last week’s initiation of Broadcom (AVGO), we mentioned our intention to sell as soon as restrictions would allow. There is no longer the diversification benefit to owning both AMD and artificial-intelligence leader Nvidia (NVDA). Broadcom, however, is poised to remain a key beneficiary of spending on artificial-intelligence networking solutions. We bought up more shares of Estee Lauder (EL) because weakness is largely baked into its current stock price, with management signaling the company is on track to improve earnings after the beauty firm’s fiscal first quarter of 2024. The Club purchased 100 shares of Estee Lauder, at $154.11 each, bringing Estee Lauder’s weighting in the portfolio to 2.32%, up from from 1.77%. We also upgraded EL shares to a 1 rating . The Club purchased 145 shares of GE HealthCare Technologies (GEHC), at $68.75 apiece, bringing its portfolio weighting to 2.66%, up from from 2.31%. The medical-technology firm’s fundamentals continue to improve, with the company reporting a beat-and-raise quarter in July. Management also highlighted opportunities for margin expansion over the next few years. The Club purchased 120 shares of Walt Disney (DIS), at $83.61 apiece, increasing its portfolio weighting to 3.89%, up from 3.55%. We remain patient on the lagging stock, which is down more than 5% year-to-date, and continue to be optimistic around CEO Bob Iger’s turnaround plan for entertainment giant. We bought up 50 shares of Starbucks (SBUX), at $95.42 apiece, increasing its weighting in the portfolio to 2.54%, up from 2.37%. The coffee giant has immense growth potential as it continues to capture market share in China , its second largest market after the U.S. We believe Starbucks has a strong long-term outlook, allowing us to continue to capitalize on a recent dip following its mixed quarterly results at the start of August. Wednesday We trimmed another holding Wednesday to refill our cash position. We sold 50 shares of Emerson Electric (EMR), at $98.31 each. The Club now owns 750 shares of the industrials firm, decreasing its weighting in the portfolio to 2.57%, from 2.73%. We also downgraded Emerson Electric to a 2 rating, meaning we would wait for a pullback before buying again. We thought it wise to make a small sale now that the company has an attractive valuation, coupled with improving fundamentals, allowing it recover most of its 2023 losses. Friday The Club made two purchases of our newest holding, Broadcom, on Friday morning. We purchased 17 shares of Broadcom, at around $886 apiece, just after the opening bell Friday, increasing its weighting in the portfolio to 1.46%, from 0.97%. Broadcom’s stock has slumped since its quarterly earnings release Thursday, despite the company’s positive fundamentals, giving us the chance to swoop in at a discount. We think the stock has room to run and is a clear beneficiary of the market’s artificial-intelligence craze. The Club is adding shares before Broadcom’s slated acquisition of cloud-computing company VMWare (VMW), which will likely close next month. Shares of Broadcom continued to tumble after that initial Friday trade, so we went back to the well. With the stock down nearly 6% midmorning Friday, the Club added 17 more shares , at $870.85 each, increasing the company’s portfolio weighting to 2.02%. We continue to see the pullback as nothing more than short-term pain ahead of long-term gains. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Traders work on the floor of the New York Stock Exchange during opening bell in New York City on January 18, 2023.
Angela Weiss | AFP | Getty Images
During a week that saw the stock market largely regain its footing following a lackluster August, the Club made eight trades — including exiting one chipmaker, as we further expanded our position in another.
Here’s a day-by-day look at each move.
Read the full article here
