We're Taking Advantage of Prices by Buying More Shares of Three Holdings
Even as we put some additional capital to work, we've got ample dry powder should more opportunities arise.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
AMAT | Buy | 110 | $171 | 900 | 3.1% |
PEP | Buy | 140 | $159 | 940 | 3.0% |
QCOM | Buy | 101 | $153.25 | 1,135 | 3.5% |
After you receive this alert, we will make the following trades:
- Buy 110 shares of Applied Materials AMAT at or near $171. Following the trade, the Portfolio will own 900 AMAT shares, roughly 3.1% of the Portfolio.
- Buy 140 shares of PepsiCo PEP at or near $159. Following the trade, the Portfolio will own 940 PEP shares, roughly 3.0% of the Portfolio.
- Buy 101 shares of Qualcomm QCOM at or near $153.25. Following the trade, the Portfolio will own 1,135 QCOM shares, roughly 3.5% of the Portfolio.
With each of these individual moves, we are taking advantage of the recent retrenchment in the share prices for each of these three holdings weighed against what we see ahead for each of the companies and their respective businesses.
The net effect will reduce the Portfolio’s cash level to around 11.4%, which offers ample dry powder should other opportunities present themselves in the coming weeks and months. As we make these trades, we remain committed to prudent portfolio management, which means balancing risks to the Portfolio as well as managing position sizing.
With Qualcomm, this action comes as the company’s 2024 Investor Day, an event we found set milestones for management’s diversification strategy, has been digested by the market. The move with the shares for Applied Materials is similar in that we are capitalizing on the post-earning fall ahead of upcoming catalysts over the next few months that are likely to reignite interest in the shares.
These include the Biden administration delivering finalized awards associated with the CHIPs Act, which means the coming seeks should bring word on more than $30 billion in funding announcements. When we get into January and the December quarter earnings season, capital spending comments from Micron MU, Taiwan Semi TSM, Samsung SSNLF and others will be keen items of interest as demand for AI and related devices, data center and other connected device tightens existing chip industry capacity. One potential risk we see with these moves today for QCOM and AMAT shares is our being on the early side. Still, given what we see ahead, we’d rather be early than late.
In the case of PepsiCo shares, the dollar’s rally over the last few weeks is poised to be a modest headwind for the company’s current quarter, but positive food comments from Walmart WMT and Target TGT this week as well as the accelerating rebound for PepsiCo’s Quaker business should help drive favorable year-over-year comparisons in the near term. That combination is leading us to take advantage of the oversold status of PEP shares and add some additional shares of this Dividend King. Right around now is when the company declares its first dividend payment for the coming year, which tends to have an early December record date.
In making these trades, we will reset our panic point for AMAT shares to $155 from $165 and move the one for QCOM shares to $140 from $148.
More Pro Portfolio
- We're Buying More Shares of This Technology Position
- Weekly Roundup: Powell and Inflation Toss Cold Water on the Post-Election Rally
- Updating Our Table for Panic, Potential Pickup Points
(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to click on Closed Trade Gain/Loss and toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long AMAT, PEP and QCOM.
