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Adding to Two Core Positions

These companies lead their industries, and they should both benefit from restructuring.
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After you have received this Alert, we'll add to two positions by buying 300 shares of Abbott Laboratories (ABT) at $33.10 and 300 shares of Procter & Gamble (PG) at $68.46.

We want to continue to build up these names in the fund, since they are two best-in-breed names in their respective industries. Abbott has separated its pharmaceutical arm from its medical technology division, and the company's leaders can now focus on growing its products, expanding its geographical base and market share and working on margin improvement.

Procter & Gamble shares have stalled since last quarter's results (shares are actually down from post earnings), and we like the risk/reward since the company is ahead of plan on its restructuring program (its goal is to see $10 billion in savings by 2016), and we see solid organic growth trends driven by product innovation and investment spending. Also, we see a less competitive environment, and that should lead to a more favorable price/mix. Lower commodity costs and more favorable currency should help both companies.

After our trades, we'll own 2,000 shares of ABT, or 2.5% of the portfolio, and 1,200 shares of PG, or 3.1%.

Regards,

Jim Cramer, Stephanie Link, and TheStreet Research Team

DISCLOSURE: At the time of publication, Action Alerts PLUSwas long ABT and PG.

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