We’re taking profits in a winning stock near all-time highs and buying a long-term energy bet
We are selling 50 shares of Procter & Gamble at roughly $170.60 and buying 100 shares of Nextracker at roughly $40.84. Following the trades, Jim Cramer’s Charitable Trust will own 350 shares of PG, decreasing its weighting to 1.9% from roughly 2.15%; and 950 shares of NXT, increasing its weighting to 1.25% from 1.10%. We’re locking in additional gains in Procter & Gamble after the stock’s rebound back to all-time highs. This sale follows a similar line of thinking to what we outlined in our trim Tuesday . The consumer products giant has made a nice move over the past week, bucking the sell-off in the broader market as investors rushed into defensive, dividend-growth stocks. But here’s our issue: P & G reported a messy quarter just last week , which is why we would rather sell into this recent strength than chase it. But if P & G’s issues in that quarter persist, where will the buyers be the next time around? Essentially, the stock’s rally is creating a higher bar for the company’s fundamentals. We’ll realize a gain of roughly 16% on stock purchased in May 2022. We’re taking those proceeds to fund another small buy of Nextracker, a company that makes technology that helps solar panels follow the sun, maximizing their power generation. It’s our second purchase of the week after adding to the fairly new position during Monday’s global stock sell-off . Nextracker is our speculative, renewable energy way to play the growing electricity demands around the world. The company reported a strong quarter last week that benefited from lumpy project timing, but the stock sold off hard because management did not raise its full-year outlook. We think this could prove to be conservatism, given it is still early in Nextracker’s fiscal year and its backlog still increased quarter over quarter. Nextracker also is a rate-cut play because most of the cost of the life of renewable projects like solar and wind is upfront, meaning lower interest rates make projects more affordable to get started. (Jim Cramer’s Charitable Trust is long PG and NXT. 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.
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