We buy 25 shares of Home Depot for about $407 each and 15 shares of Blackrock for about $1,041. After Tuesday’s trades, Jim Cramer’s Charitable Trust will own 200 shares of HD, increasing its weighting from about 2% to 2.25%. The Trust portfolio used by the CNBC Investing Club will own 75 shares of BLK following the transaction, increasing its weighting from approximately 1.75% to approximately 2.15%. This is our second trading alert of the day. On Tuesday morning, we raised cash by reducing our position in Broadcom, capturing a triple-digit percentage gain in the stock’s recent parabolic move; and also by selling shares of Advanced Micro Devices based on fundamental problems. Those were sales that came from discipline. But there’s another discipline we should honor: the S&P 500 Short Range Oscillator. This technical tool showed the market becoming slightly more oversold after Monday’s session. According to the Oscillator, when the market is oversold, we see broader market weakness as an opportunity to buy shares of quality companies. That’s why we put cash to work. HD YTD berg Home Depot YTD A quality stock we’re buying for its recent weakness is Home Depot. Shares of the home improvement retailer have retreated about 6% from their recent high and are down slightly since the company reported a better-than-expected third quarter. We were very encouraged by Home Depot’s earnings report, which showed the smallest decline in comparable sales in nearly two years. This was a good sign that business activity has bottomed out and will evolve positively next year. BLK YTD berg BlackRock YTD We are also expanding our position in the world’s largest asset manager, BlackRock. Our most recent purchase was last Monday, shortly after the company announced its $12 billion acquisition of HPS Investment Partners. This was a great deal for BlackRock as it will make the country a leader in private credit, one of the fastest growing financial sectors. Once the acquisition is completed, BlackRock will become a top five credit manager with approximately $220 billion in pro-forma private credit client assets. Not only does the deal add to BlackRock’s growing fee base, we would also argue that it should give the stock a higher price-to-earnings ratio on the market. The company’s recent purchases in faster growing capabilities such as HPS and the recently closed Global Infrastructure Partners deal should see the share price revalued from a traditional money manager to that of an alternative manager, which generally has a higher valuation on the market. . (Jim Cramer’s Charitable Trust is long in BLK. See here for a full list of the stocks.) 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 charity’s portfolio. If Jim has talked about a stock on CNBC TV, he will wait 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, ALONG WITH OUR DISCLAIMER. No fiduciary obligation or duty exists nor is it created by your receipt of any information provided in connection with the Investment Club. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
- Berkshire’s cash pile could reach $200 billion if Buffett sells shares
- With Hurricane Helene disrupting travel, here’s what fliers need to know
- Nvidia’s profits could trigger a share price increase of nearly $300 billion, Goldman says
- Actualism, possibilism and public choice
- Competition works, even in healthcare
- Beware of economic misconceptions – Econlib