Shortly after the opening bell, we will be buying 75 shares of Advanced Micro Devices at roughly $135.30 and 25 shares of Eaton at roughly $274.48. Following the trades, Jim Cramer’s Charitable Trust will own 425 shares of AMD, increasing its weighting to 1.85% from 1.53%, and 300 shares of Eaton, boosting its weighting to 2.6% from 2.42%. We’re making a couple of buys Tuesday, deploying the rest of the cash we raised Monday from our flurry of trades plus a little more. Although we are always hesitant to put money to work in an “up open” during volatile times, we are buying the stocks of companies that recently reported better-than-expected quarters and gave upbeat guidance, but have seen their stocks fall anyways. With our trading restrictions finally lifted on AMD, we are able to add to our position. The company posted solid second-quarter results last week , beating expectations and raising its annual sales forecast of its AI chip, the MI300X, by half a billion dollars. And yet, the stock is still down from the quarter. The well-documented failures of Intel also could lead to accelerating market share gains for AMD. Eaton’s another good example of what we like buying when the market sell-off takes both good and bad stocks lower. The company reported a fantastic quarter last week, delivering earnings per share above the high end of its guidance and raising its full-year outlook. The company also provided a bullish view of the third quarter, which matters in a market that is concerned about an imminent economic slowdown. The stock may not be cheap compared to other industrials, but with shares roughly 20% off their highs, we like stepping in and buying some at this level. (Jim Cramer’s Charitable Trust is long ETN and AMD. 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.
Read the full article here
