-- Selling 300 shares of Stanley Black & Decker (SWK) at $82.06.
-- Selling 100 shares of Timken (TKR) at $60.51.
-- Selling 100 shares of TJX (TJX) at $52.46.
We'll lock in gains in Stanley Black & Decker (SWK) by selling 300 shares at $82.06, and we'll sell 100 shares of Timken (TKR) at $60.51 and 100 shares of TJX (TJX) at $52.46. We're up 5% in Stanley Black & Decker, 12% in Timken and 12% in TJX, and we'll take profits and raise cash.
The market has been on a tear in the last week, and these positions have all participated nicely. We continue to like the Stanley Black & Decker story, since the consumer do-it- yourself division is seeing an improvement, its European security and industrial segment is recovering, and capital allocation plans are under way. For these reasons we remain long-term holders on the position.
Timken is a special-situation story in which management is analyzing a restructuring of sorts in response to shareholder activism. We expect news on this in the third quarter, so this too will remain a core bet.
And finally, the off-price retailers remain one of our favorite places in retail, and TJX is the best of the bunch, because of strong product assortment, square-footage growth and international expansion. But it is prudent to take gains, and that is what we'll do today.
After our trades, we'll own 1,000 shares of SWK, or 2.8% of the portfolio, 1,200 shares of TKR, or 2.5%, and 1,950 shares of TJX or 3.5%.
Regards,
Jim Cramer, Stephanie Link, and TheStreet Research Team
DISCLOSURE: At the time of publication, Action Alerts PLUSwas long SWK, TKR and TJX.