We will make four trades on Monday morning. Shortly after the opening bell, we will sell 100 shares of Danaher for approximately $274.13. After the trade, Jim Cramer’s Charitable Trust will own 475 shares of Danaher, reducing its weight in the portfolio to 4% from 4.84%. In addition, we will sell 20 shares of Salesforce for approximately $264.89. This will reduce its weight in the portfolio to 1.62% from 1.78%. We will also buy 50 shares of Disney for approximately $90.19. The purchase will give us 930 shares of Disney, increasing its weight to 2.57% from 2.43%. Finally, we will buy 225 shares of Starbucks for approximately $74.16. This will bring our position to 1,100 shares, increasing its weight to 2.5% from 1.99%. Now that our trading restrictions have been lifted, we are selling some Danaher. We signaled this sale last Friday after the stock hit $275 — the profit-taking level Jim set during our monthly meeting in July. The position is also ripe for right-sizing after inflating to nearly 5% thanks to last week’s 12% rally to a new 52-week high, which was driven by a better-than-expected quarter and overall market turnover. We will take a small gain of about 1% on shares purchased in January 2022. We will also be tying up the gains in Salesforce. The stock has made a nice comeback over the past two months, recovering nearly all of its losses from its May 29 earnings report when the stock fell 20% after management disappointedly cut its outlook. Given the comeback, we believe it is appropriate to reduce the position. We will take a solid gain of about 20% on shares purchased in January 2022. On the long side, we are adding to our position in Disney. Shares are down about 8% from our previous purchase of 50 shares in July, which was the first time we’ve added shares since selling a total of 490 shares at an average price of about $118 in April. We think the box office success of “Inside Out 2” and now “Deadpool & Wolverine” is a sign that the company’s franchise sequel strategy is working. Finally, we’re buying some Starbucks shares. A week ago, we upgraded our rating to 1 buy here after learning that activist firm Elliott Management had acquired a stake in the coffee giant. We’re big fans of Elliott Management’s work and think their presence will lead to much-needed changes. Another thing to note is that Starbucks reports after the closing bell on Tuesday night, and our Monday buy is not a call for the quarter. We expect quieter results, but so should the market. We think Monday morning’s reaction to McDonald’s quarter — it was up slightly despite missing revenue, earnings and same-store sales — is a good sign that sentiment in these high-quality global restaurant companies has cooled. Additionally, if trends don’t improve from here and Starbucks’ operations don’t improve, we think Elliott will push for new management that can fix the problems. (Jim Cramer’s charitable trust is long on DHR, CRM, DIS and SBUX. See here for a full list of 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 portfolio. If Jim talks about a stock on CNBC TV, he waits 72 hours after issuing a trade alert before executing the trade. The above investment club information is subject to our Terms and Conditions and Privacy Policy, as well as our Disclaimer. No fiduciary obligation or duty is, and is not, created by your receipt of any information provided in connection with the investment club. No specific result or profit is guaranteed.
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Shorted 2 stocks and bought 2 others that lagged
