With the recent additions of Royal Dutch (RDS.A), Walgreen
(WAG), Kinder Morgan (KMI) and 3M (MMM) to the portfolio, we
are low on our cash. In light of this, we’ll raise some
funds by trimming back two positions.
First, after you receive this Alert we’ll pare back the
Boeing (BA:NYSE) position by selling 300 shares at $127.52,
given the 7.5% gain the stock has recently enjoyed off the
lows. We continue to like this story, the larger aerospace
cycle and Boeing’s dominance in the industry. But the bounce
from the lows has been fairly quick, so we’ll right-size the
position -- and we have ample aerospace exposure via United
Technologies (UTX:NYSE). On that subject, we were pleased to
hear that United Tech had increased its share-buyback
program Wednesday to $1.35 billion from the prior $1.25
billion and that it reiterated its 2014 guidance.
Both Boeing and United Tech remain core holdings -- but,
again, it’s prudent to trim back the Boeing position given
the move it has had.
Second, we’ll sell 500 shares of Xilinx (XLNX) at $41.85.
We’ve been waiting for a bounce in the shares, and we still
haven’t seen one. Since the company missed estimates on
second-quarter revenue and lowered guidance yet again, we
have been saying that this is a show-me story. China LTE
demand should eventually come back, but it’s more likely a
2015 event. That is why we continue to rate Xilinx a Three,
and we see other stocks as having more near-term upside
potential: Facebook (FB), Google (GOOGL), and even Twitter
(TWTR). As we indicated Wednesday, the latter is one name we
are interested in initiating on a pullback.
Jim Cramer, Stephanie Link, and TheStreet Research Team
DISCLOSURE: At the time of publication, Action Alerts PLUS
was long BA, XLNX, RDS.A, WAG, KMI, MMM, UTX, FB and GOOGL.
We believe new CEO Peter Hancock will be consistent in running the company.
The company's Eagle Ottawa buyout is even more positive than what we had initially thought.
We are keeping our strategy focused on industrials, financials and technology.
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