| Symbol | Action | # Shares Traded | Recent Price | % of Portfolio* | Shares Owned* |
|---|---|---|---|---|---|
SELL | 25 | $187.56 | 3% | 425 | |
SELL | 500 | $17.9 | 2.7% | 4000 |
We're going to take partial gains in Goldman Sachs (GS) and sell 25 shares at about $187.56. We'll also trim 500 shares of Boardwalk Pipeline Partners (BWP) at about $17.90.
We're up 15% in the Goldman position, and we want to lock in some gains and have a little extra cash ahead of 3Q earnings season (a reason we also right-sized the SunTrust (STI) position earlier). The third quarter should be solid for Goldman with better trends in its fixed-income, currencies and commodities trading business (down single digits q/q vs. double digits in the last several quarters), solid M&A pipeline conversion and easier comparisons. But with the yield curve remaining stubbornly low and loan growth at the low end of expectations, we believe it's prudent to trim.
We like the BWP story as well, with the pipeline model as the toll-taker in the industry. It has good exposure in the most popular U.S. shales, has been aggressively investing in its business and it should return to growing its distribution base over the coming quarters. But we made it a Three last week, wanting to right-size it given the near-term macro headwinds in the energy sector, and favoring a lower price to buy it back.
After our trades, we'll own 425 GS shares, or 3% of the portfolio, and 4,000 BWP shares, or 2.7%.
Regards,
Jim Cramer, Stephanie Link, and TheStreet Research Team
DISCLOSURE: At the time of publication, Action Alerts PLUSwas long GS, BWP and STI.