We are selling 10 shares of CrowdStrike at roughly $487 and 25 shares of Eaton at $340. Following the trades, Jim Cramer’s Charitable Trust will own 245 shares of CRWD, decreasing its weighting to roughly 3.35% from 3.5%, and 325 shares of ETN, decreasing its weighting to 3.15% from 3.35%. The market has jumped nearly 2% this week, driven by easing geopolitical tensions in the Middle East that have sent oil prices sharply lower. We’re locking in big gains on a couple of positions to capitalize on this recent strength. The CrowdStrike trim does not represent a change to our long-term thesis in this best-of-breed cybersecurity company. In addition, a ceasefire in the Middle East doesn’t change the elevated cyber threat environment around the world. If anything, it probably created more of a reason for enterprises of all sizes to invest in their cybersecurity solutions. However, we are taking some chips off the table at our highest sale price to date after the stock’s roughly 40% rally this year. Also, CrowdStrike shares have now fully recovered from its June earnings sell-off, which we said at the time was short-sighted . From this sale, we will realize a gain of about 57% on stock purchased in October 2024. Similarly, the Eaton sale does not reflect a change in our view that the company’s electrical products will be in high demand for years due to their critical role in helping to solve the energy needs of data centers. We were also pleased to see the company look beyond the data center last week and make a small acquisition of a high-margin, high-growth business to boost its aerospace and defense portfolio. We still like this story long term, but we’ve also become a little more conscious about how the magnitude of Eaton’s earnings beats over the past three quarters has shrunk as this story has become more understood. That could make it a little tougher for the stock to work in the same way we enjoyed in 2024. From this sale, we will realize a gain of about 48% on stock purchased in November 2023. Lastly, we would sell some shares of Broadcom on Tuesday’s spike if we were not restricted from trading it. The stock is up more than 3% and making a fresh all-time high following an upgrade to a buy rating over at HSBC. The analysts are now positive on the chipmaker, stating that the market is undervaluing the company’s ASIC (custom chip) revenue potential. They estimate hyperscaler AI server capex allocation toward custom AI chips will increase to 14% in the fiscal year 2027 from 2% in fiscal year 2023. Broadcom’s custom chip business, which is expected to add several new customers over the next few years, is one of the main reasons we’ve been behind the stock for several years. But after the stock’s recent run, we want to take a little bit off the table to not be so greedy. (Jim Cramer’s Charitable Trust is long CRWD, ETN and AVGO. 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 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.
We’re trimming two stocks to lock in gains — and want to sell a third
by Stacks Grow
written by Stacks Grow
Stacks Grow
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