We’re selling 50 shares of Abbott Laboratories at roughly $129.66 Following Thursday’s trade, Jim Cramer’s Charitable Trust will own 250 shares of ABT, decreasing its portfolio weighting to about 0.89% from 1.07%. We’ve been slowly whittling down our position — making a pair of recent trades on Thursday and July 21 —ever since the company reported results and it became clear that the Chinese government’s strategy to control health-care costs would be a drag on results for longer than previously expected. While eventually expected to be resolved, it was enough for management to negatively revise its outlook for the remainder of the year. The impact of this program is being felt most acutely in Abbott’s diagnostics business. In the aforementioned trades, we sold 100 shares each. On Monday, we’re going with a smaller, 50-share sale to give ourself a bit more time and room to benefit from what is clearly positive price action — the stock is up more than 7% since its earnings sell-off , sitting about $2 below where it closed July 16. With Monday’s sale, we will realize a gain of about 15% on stock bought in March 2024. Additionally, if not for our trading restrictions, we would be reallocating the cash from the Abbott sale into our position in Starbucks — in line with our commentary last week. Unfortunately, our restrictions are still in effect Monday because Jim Cramer mentioned Starbucks on CNBC’s “Squawk on the Street.” Whenever Jim mentions a stock on TV, we must wait 72 hours before trading it. Nonetheless, we’re calling out the buying opportunity in Starbucks again Monday because the stock’s post-earnings softness does not adequately reflect the positive momentum we’re seeing in the business. thanks to Brian Niccol’s turnaround strategy. (Jim Cramer’s Charitable Trust is long ABT and SBUX. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
