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Taking Some Profit and Going Shopping

I'm adding to some of my portfolio names with the profit I'm taking on another.
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I am going to buy 100 shares of Home Depot (HD) at $27.97, 50 shares of Apple (AAPL) at $243 and 100 shares of Marathon Oil (MRO) at $30.51. I'm going to sell 200 Honeywell (HON) at $38.66. I am currently free to trade all of the names in the fund (something that is very rare), and I plan to take advantage of it and build up a few positions, while taking gains in HON.

HD shares are down 30% from their high, and the company just posted a solid quarterly report, despite the difficult housing market. Today's Case-Shiller home-price index report indicated a surprising 4.4% increase, a positive development. Combined with lower inventories, I believe this market is bottoming. HD trades at 14x earnings and offers a good risk-reward at the current price, especially given the turnaround at the company in the wake of the multiple restructuring initiatives taken by Frank Blake.

I am going to add to Apple (I've been restricted for months!) and want to build this growth technology play in the fund. This is, seasonally, the time to be adding here -- over the last five years, September has, on average, returned 12%, while September-December has, on average, returned 22% (mainly due to holiday/back to school seasonality). While past performance does not guarantee future performance, I like what the company is doing on the product front, with refreshes in iPod/Macs and traction building globally in iPhone 4 and its iPad. It's valuation of 15x earnings doesn't seem excessive, given its 20-25% growth rate and $49 a share in cash.

Marathon (MRO) has the yield I like, at 3.2%, and the stock has corrected from $35, which is overdone, in my view, given its superior refining profitability and transition to a faster-growing company with more exposure in exploration and production. I also like ConocoPhillips (COP) , especially for yield, but will wait for $51 there. I'll use some of the gains from Honeywell to pay for these transactions.

Other names I have my eye on and will slowly add to: Bank of America (BAC) , Boeing (BA) , UPS (UPS) , Intel (INTC) and Nucor (NUE) and Accenture (ACN) . New positions may include Verizon (VZ) , especially around $28-29, and the SPDR Gold Trust (GLD) , should it come down below $120.

After my trades, I will hold 150 shares in Apple, equivalent to 1.30% of the portfolio, 2,700 shares in HD, for 2.68% of the portfolio, 3,200 MRO shares, or 2.68% of the portfolio, and 800 shares in HON, equivalent to 1.10% of the fund.

Regards,

Jim Cramer

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DISCLOSURE: At the time of publication, Cramer was long HON, HD, AAPL, MRO, COP, BA, UPS, INTC, ACN, NUE and BAC.