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Taking Profits

This stock is surging, so I'm locking in some gains.
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I am going to sell 200 shares of Black & Decker (BDK) and take profits in my position. It is up $3 today, and I have a nice gain from my recent purchase in the low $50s. I am now up on from my total cost basis as well, so I am glad I stayed patient with it.

This is a good long-term restructuring story that has early- cycle exposure to the housing market. The company is buying back stock at a rapid clip, and I expect that to continue. But the shares are up 18% in the past few weeks, so I will trim this position.

I will use the proceeds to buy more Wellpoint (WLP) , Walgreen (WAG) , Pepsi (PEP) or Proctor & Gamble (PG) when the shares pull back. I am also looking for a new retail name, and Costco (COST) screens well.

After the sale, I will own 1,000 shares, or 1.95% of the fund.

Regards,

Jim Cramer

Click here to literally trade alongside with Cramer!http://www.thestreet.com/staticFull/aap-td-ct-offer_alert.html

DISCLOSURE: At the time of publication, Cramer was long BDK, PEP, WLP, WAG and PG.

Send email to james.cramer@thestreet.com.