Skip to main content

Tweaking Pentair, Cimarex Exposure

Paring back one position frees up cash for Cramer to build another.
  • Author:
  • Publish date:

Editor's Note: This was sent to subscribers of Action Alerts PLUS on May 9 at 11:17 a.m. EDT.



has grown to be my second-largest holding, and I am going to pare back 500 shares after you read this. At $41.54, the stock has gained more than 10% in the past month. This sale will lower my stake to 5,000 shares, or about 5.7% of my overall portfolio. I maintain that there is potential for consistent growth in the water business, but want to realize some of the recent gains in Pentair.

I will use some of these funds to buy 500 shares of

Cimarex Energy


, which is at $36.48. The stock is very attractive at just 9 times earnings, ahead of the expected close of the

Magnum Hunter


deal later this month. Once the arbitrage selling-pressure subsides, I believe Cimarex will be worth at least $39. This purchase will give me a total of 5,000 XEC shares, or about 5% of my portfolio.

At the time of publication, Cramer was long Pentair and Cimarex Energy.

James J. Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column to Listen to Cramer's RealMoney Radio show on your computer; just click

here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click

here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click

here to get his second book, "You Got Screwed!" and click

here to order Cramer's autobiography, "Confessions of a Street Addict."