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Jim Cramer's Action Alerts PLUS

Trimming NXPI Due to Takeover Talk

By Jim Cramer and Jack Mohr | 09/29/16 - 01:51 PM EDT
Actions Taken:
Symbol Action # Shares Traded Recent Price Shares Owned After Trade % of Portfolio After Trade
NXPI Sell 350 $95.39 650 2.52%

Moments ago, The Wall Street Journal reported Qualcomm (QCOM:Nasdaq) was in talks to acquire NXP Semiconductors (NXPI:Nasdaq) for "$30 billion plus." Although we await incremental information before drawing a conclusion, we would expect the company to fetch at least $100-$115 a share in case of any takeover. Shares are up nearly 20% and we will use the opportunity to take profits on one-third of the position, just in case the rumors aren’t true and the stock comes right back down, where we will buy it back.

After you receive this Alert, we will trim our NXP Semiconductor position by roughly one-third, selling 350 shares at around $95.39. Following the trade, NXPI will represent roughly 2.52% of the portfolio.

We have long touted the company's discount to fair value, which is why it has been our top-ranked value name in our Investment Indices (see the most recent list).

We will be out with incremental commentary but recommend taking one-third of profits immediately, ahead of incremental information.

Regards,

Jim Cramer, Portfolio Manager & Jack Mohr, Director of Research
Action Alerts PLUS

DISCLOSURE: At the time of publication, Action Alerts PLUS was long NXPI.

Raising PepsiCo's Price Target After Strong Earnings
Stocks in Focus: PEP

Our new target reflects the blowout quarter, its best-in-class growth profile and consistent value creation.

09/29/16 - 12:30 PM EDT
Pepsi's Results Pop: Beat Consensus, Guidance Raised
Stocks in Focus: PEP

Investments are clearly paying off and we anticipate raising our price target as the stock reacts today to the results.

09/29/16 - 08:53 AM EDT
Weekly Roundup

With the Fed decision behind it, the market focuses on earnings and oil. In the portfolio, we added to three positions and exited from one.

09/23/16 - 07:02 PM EDT

Markets

Chart of I:DJI
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASDAQ 5,269.1540 -49.3940 -0.93%

Action Alerts PLUS Holdings

Holdings 1

Stocks we would buy right now

Symbol % Portfolio
Weighting
Industry
AA 2.99% Metals & Mining
AAPL 3.68% Consumer Durables
AGN 4.62% Drugs
BMY 1.08% Drugs
C 4.13% Banking
CSCO 4.90% Computer Hardware
DOW 3.06% Chemicals
FB 5.13% Internet
GE 2.78% Industrial
GOOGL 4.82% Internet
NWL 1.04% Consumer Durables
NXPI 2.50% Electronics
PNRA 4.62% Leisure
SBUX 3.75% Leisure
SLB 3.10% Energy
TJX 3.85% Retail
WBA 3.65% Retail
Holdings 2

Stocks we would buy on a pullback

Symbol % Portfolio
Weighting
Industry
AEP 1.29% Utilities
CMCSA 1.59% Media
COST 2.40% Retail
OXY 2.38% Energy
PEP 3.88% Food & Beverage
V 3.53% Financial Services
WFC 4.08% Banking