This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Jim Cramer's Action Alerts PLUS

Portfolio Updates: Mergers, Partnerships and Oil

By Jim Cramer and the AAP Team | 2017-06-26 16:28:33.0
Stocks in Focus: WBA, RAD, GOOGL, CAR, AAPL, HTZ, CSCO, APA, MMP, XEC, SLB

Rounding out Monday's trading, we wanted to provide updates on a few more positions that attracted headlines.

Shares of Walgreens Boots Alliance (WBA)  traded higher Monday as speculation grew that its pending merger with Rite Aid (RAD) would receive FTC approval. Conversely, this announcement was followed by speculation that the two companies were preparing to battle against the FTC.

As we are getting closer to the FTC's decision, we want to remind members of the two ways we see the planned merger playing out. If the acquisition is approved, we would expect WBA to receive a nice boost from synergies in the deal. If the acquisition is not approved, however, we would still expect WBA management to use the capital position it built for the merger to fund a sizeable buyback program instead.

While we are receiving mixed reporting related to the merger, with both companies scheduled to report earnings this Thursday, June 29, we should be gaining clarity soon.

After the news that Alphabet (GOOGL) was teaming up with Avis (CAR) in the autonomous vehicles area (for more analysis see here), it was announced later that Apple (AAPL) would be leasing six autonomous driving cars from Hertz (HTZ) for testing. This deal is much smaller in scale than the Alphabet-Avis agreement, as it is not a partnership, so it is more likely a response by Apple to Alphabet's announcement as it tries and regain some of the spotlight. Nevertheless, we remind members that it is really Alphabet's self-driving car system that we are interested in, as autonomous driving is not a significant factor in our Apple thesis.

Meanwhile, Apple CEO Tim Cook was on stage today with Cisco's (CSCO) CEO Chuck Robbins at a Cisco event as they announced a partnership to help businesses get cybersecurity insurance premium discounts. The discount could apply if businesses use equipment from both companies. The two companies are trying to promote their best-in class services by working with insurance companies in arguing that cyber-attacks are less likely if businesses use their combined products.

We view the cross-promotion between Apple and Cisco to be beneficial for both companies, but especially Cisco, as it looks to transition into primarily a security company.

Oil is trading higher on Wednesday, providing further evidence of support at the $43 level. There was no new information with respect to production or inventories causing the rally, which could have been attributed to investors previously being too bearish and reallocating their positions. As a result, our oil positions traded higher Monday, with Apache (APA) and Magellan Midstream Partners (MMP) leading the charge. Cimarex (XEC) edged slightly higher, while Schlumberger (SLB) was largely flat.

As a reminder to members, we are remaining patient with our oil positions. We are waiting to see a significant announcement that corresponds with a major move in the marketplace before we take any new action. We will be taking a wait-and-see approach on our oil names until there is a material development to both the commodity and our stocks. Accordingly, we will give members an update when that occurs.

Action Alerts PLUS, which Cramer manages as a charitable trust, is long WBA, GOOGL, AAPL, CSCO, APA, MMP, XEC and SLB.

Updates on Alphabet, Western Digital and Arconic
Stocks in Focus: CAR, GOOG, GOOGL, WDC, ARNC

Alphabet's deal with Avis could lead to consumer acceptance of autonomous cars.

06/26/17 - 02:16 PM EDT
We'll Monitor the Effect of London's Grenfell Tower Fire on Arconic's Stock
Stocks in Focus: ARNC

The fire was not a result of faulty material, but rather misuse of a quality product.

06/26/17 - 10:43 AM EDT
Weekly Roundup
Stocks in Focus: ADBE, TJX, PEP, LUV, ABT, AGN, APA, XEC, CSCO, CMCSA, DHR, DXC, EZU, FB, GE, GOOGL, KEY, MMP, NUE, SLB, SNA, WFC, AAPL, ARNC, C, DOW, NWL, NXPI, SBUX, WBA, WDC

Tech rotation, oil and Fed rate hike keep markets on even (flat) keel. Several portfolio positions get beefed up.

06/23/17 - 06:14 PM EDT

Markets

Chart of I:DJI
DOW 21,409.55 +14.79 0.07%
S&P 500 2,439.07 +0.77 0.03%
NASDAQ 6,247.1493 -18.1003 -0.29%

Action Alerts PLUS Holdings

Holdings 1

Stocks we would buy right now

Symbol % Portfolio
Weighting
Industry
ABT 0.009030307241663572 Health Services
AGN 0.050439530704171336 Drugs
APA 0.03834607390989854 Energy
CMCSA 0.029202357663668434 Media
CSCO 0.035737666804868284 Computer Hardware
DHR 0.036250496791371586 Health Services
DXC 0.029062209950708167 Computer Software & Services
EZU 0.014949704065380147
FB 0.05664549271991456 Internet
GE 0.023938335802926584 Industrial
GOOGL 0.053794593190485955 Internet
KEY 0.013361978001448692 Banking
MMP 0.031254415229223516 Energy
NUE 0.03917073255773843 Metals & Mining
SLB 0.03402122613087596 Energy
SNA 0.03740929709169044 Industrial
TJX 0.043850744146184006 Retail
WFC 0.0390274499617251 Banking
XEC 0.030889293555984923 Energy
Holdings 2

Stocks we would buy on a pullback

Symbol % Portfolio
Weighting
Industry
AAPL 0.04409342097546784 Consumer Durables
ADBE 0.016038799318989806 Computer Software & Services
ARNC 0.019481269721019122 Industrial
C 0.03293176206749535 Banking
DOW 0.03223212993200686 Chemicals
LUV 0.02048664515662357 Transport
NWL 0.023611201536095645 Consumer Durables
NXPI 0.022262279798853066 Electronics
PEP 0.025905935930934557 Food & Beverage
SBUX 0.026390551969960326 Leisure
WBA 0.014296910770802057 Retail
WDC 0.013100123064075559 Computer Hardware