We have four trades to do on Monday morning. Shortly after the market opens, we will sell 100 shares of Danaher stock for approximately $274.13. Following the transaction, Jim Cramer’s charitable trust will hold 475 shares of Danaher stock, reducing its weight in the portfolio to 4% from 4.84%. Additionally, we will sell 20 shares of Salesforce stock at approximately $264.89. This will reduce its weight in the portfolio from 1.78% to 1.62%. We will also purchase 50 shares of Disney stock at approximately $90.19. This purchase will give us 930 shares of Disney stock, increasing its weighting from 2.43% to 2.57%. Finally, we purchased 225 shares of Starbucks stock at a price of approximately $74.16. This will bring our position to 1,100 shares and increase the weight from 1.99% to 2.5%. Now that our trading restrictions have been lifted, we are selling some Danaher. We announced the sale last Friday after the stock hit $275, the profit-taking level Jim identified during our monthly meeting in July. With a 12% gain last week to a new 52-week high, the position is also ripe for resizing after rising to nearly 5%, driven by a better-than-expected quarter and broader market rotation. We will realize a modest gain of approximately 1% on the shares purchased in January 2022. The stock has staged a nice rally over the past few months, recouping nearly all of its losses from the May 29 earnings report, when the stock fell 20% after management disappointingly downgraded its outlook. Given its comeback, we believe it is appropriate to reduce our position. We would have realized a solid gain of approximately 20% on the shares purchased in January 2022. The stock is down about 8% compared to the 50 shares purchased in July, marking our first increase in the stock since we sold a total of 490 shares in April at an average price of about $118. We think the box office success of Inside Out 2 and now Deadpool vs. Wolverine is a sign that the company’s franchise sequel strategy is working. Finally, we bought some stock in Starbucks. A week ago, we upgraded our rating to Buy Now 1 after learning that activist firm Elliott Management had taken a stake in the coffee giant. We are big fans of Elliott Management’s work and believe its presence should bring about much-needed change. Another thing to note is that Starbucks reports after the close on Tuesday night, and our Monday buy was not a call option for the quarter. We expect weaker results, but so should the market. We think Monday morning’s reaction to McDonald’s quarter – which was still up slightly despite missing expectations on revenue, earnings and same-store sales – is a good sign that sentiment has subsided for these premium global restaurant companies. Additionally, if trends don’t turn around from now on and Starbucks’ operations don’t improve, we think Elliott will instigate new management to fix the problems. (Jim Cramer’s Charitable Trust is a long-term holding of DHR, CRM, DIS, and SBUX. See here for a complete list of stocks.) As Jim Cramer’s CNBC Investing As a club subscriber, you will receive trade alerts before Jim Cramer trades. Jim waits 45 minutes after sending a trade alert before buying or selling stocks in his charitable trust portfolio. If Jim talked about a stock on CNBC TV, he would wait 72 hours after issuing a trade alert before executing the trade. The investment club information above is subject to our Terms and Conditions and Privacy Policy and our Disclaimer. No fiduciary duty or obligation is created or created by any information you receive in connection with the Investment Club. No specific results or profits are guaranteed.
