Buy 25 shares of Home Depot at approximately $407 each and 15 shares of BlackRock at approximately $1,041. Following Tuesday’s trade, the Jim Cramer Charitable Trust now owns 200 shares of HD stock, increasing its stake from about 2% to 2.25%. Following the transaction, the trust’s portfolio used by CNBC Investment Club will own 75 shares of BLK, increasing its weight from approximately 1.75% to approximately 2.15%. This is the second trading alert of the day. We raised money by cutting our position in Broadcom on Tuesday morning, locking in a triple-digit percentage increase in the stock’s recent parabolic move. You can also sell your Advanced Micro Devices shares based on fundamental concerns. Those were sales born of discipline. But there is another discipline that we must respect. It’s the S&P 500 Short Range Oscillator. This technical tool showed the market to be a bit more oversold after Monday’s trading. According to the oscillator, when a market is oversold, widespread weakness in the market is seen as an opportunity to buy stocks in blue-chip companies. That’s why we use cash. HD YTD Mountain Home Depot YTD One of the blue chip stocks that has been buying on recent weakness is Home Depot. The home improvement retailer’s stock is down about 6% from recent highs and has fallen 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 comparable sales decline in nearly two years. This was a good sign that business had bottomed out and would turn positive next year. BLK YTD Mountain BlackRock YTD We are also increasing our position in BlackRock, the world’s largest asset management company. Our most recent purchase was last Monday, shortly after the company announced its $12 billion acquisition of HPS Investment Partners. This was a huge deal for BlackRock. This is because BlackRock will become a leader in private credit, one of the fastest growing areas in the financial sector. Upon completion of the acquisition, BlackRock will become a top five credit manager with approximately $220 billion in private credit client assets. We would argue that this deal not only adds to BlackRock’s growing fee base, but should also result in higher price-to-earnings ratios in the market. The company’s recent buy-in into high-growth deals such as HPS and the recently completed Global Infrastructure Partners deal has pushed its share price multiples from traditional asset managers to those of alternative managers, which are generally more highly valued in the market. The ratio should be reevaluated. (Jim Cramer’s Charitable Trust is long BLK. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you receive trade alerts before Jim makes a trade. I will receive it. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
After taking profits, I bought 2 shares in the oversold market.
