A Flurry of Trades
| Symbol | Action | # Shares Traded | Recent Price | % of Portfolio* | Shares Owned* |
|---|---|---|---|---|---|
SELL | 100 | $172.17 | 3.5% | 550 | |
BUY | 100 | $62.24 | 1.4% | 600 | |
BUY | 50 | $142.03 | 1.8% | 350 | |
BUY | 100 | $44.06 | 1.5% | 900 |
-- Buy 100 shares of Walgreen (WAG) at around $62.24
-- Buy 50 shares of 3M (MMM) at around $142.03
-- Buy 100 shares of Microsoft (MSFT) at around $44.06
-- Sell 100 shares of Goldman Sachs (GS) at around $172.17
After you receive this Alert, we're going to buy 100 shares of Walgreen (WAG) at around $62.24, 50 shares of 3M (MMM) at around $142.03 and 100 shares of Microsoft (MSFT) at around $44.06, and we will sell 100 shares of Goldman Sachs (GS) at around $172.17.
Goldman shares are up 12.1% since the April lows near $151 and getting close to our target price of $184. We like the story for the M&A pipeline, easy comparisons in fixed-income, currency and commodities (FICC), and ancillary revenue opportunities from increased deal activity. It's had a nice move and we'll lock in some gains while improving our cost basis.
Walgreen, 3M and Microsoft are new positions that we'll continue to build slowly. WAG shares are down 15% from the highs following the lack of tax inversion and lowered guidance. We like the risk/reward and $1 billion Alliance Boots synergies.
MMM posted one of the best organic growth rates of all the industrials at 4.8%, and with a continued focus on technology and health care products, we like the product mix and margin upside. We also like the 4% pullback and see it as an opportunity.
Finally, MSFT shares have had a nice rally year to date and we see more upside from the new CEO Satya Nadella and his team as they focus on growth strategies in enterprise, benefits from the PC refresh and potential M&A into higher margin, higher growth end-markets.
After our trades, we'll own 550 shares of GS, or 3.5% of the portfolio; 600 shares of WAG, or 1.4%; 350 shares of MMM, or 1.8%; and 900 shares of MSFT, or 1.5%.
Regards,
Jim Cramer, Stephanie Link, and TheStreet Research Team
DISCLOSURE: At the time of publication, Action Alerts PLUSwas long GS, WAG, MMM and MSFT.