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Closing an Industrial Position

We'll take profits in this name, since we see more upside in some newer positions.
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With the additions of Yum! Brands (YUM) and the Vanguard MSCI European ETF (VGK) this morning, we are up to 32 names. We are going to use the strength in Boeing (BA) to exit the position and sell 1,000 shares at $74.25.

We'll add 100 shares to the Goldman Sachs (GS) position today at $122 to further build out this name, since we like the valuation, trough return-on-equity levels and upcoming cash distribution in the first quarter.

Boeing is up today, and it has been ranked a Three for the last several months. We are up slightly in the position and will take the small gain. We like the aerospace cycle, Boeing's dominance and the new product cycle story. But we see two things holding the shares back in the near term (and better places to put our money): the continued issues with the 787 (this time it's the electrical issues -- management says this is normal for a new plane) and the union contract overhang. We don't see big downside to shares, but we see more upside in our newer positions, such as Yum! Brands, the VGK, Goldman Sachs (GS) , MasterCard (MA) and Weyerhaeuser (WY) .

After our trade, we'll be out of the BA position, and we will own 400 shares of GS, or 1.7% of the portfolio.

Regards,

Jim Cramer, Stephanie Link, and TheStreet Research Team

DISCLOSURE: At the time of publication, Action Alerts PLUSwas long BA, VGK, YUM, GS, MA and WY.

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