3 takeaways from our daily meeting: Banks as market leaders, 3 trades and keeping CRM
Every weekday the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Tuesday’s key moments. We like the banks here We’re making 1 sale and 2 buys Don’t sell CRM into strength 1. We like the banks here We still like the banks, one of the new market leaders , on a day where the market is rallying for a second consecutive day. Of course, Club names Morgan Stanley (MS) and Wells Fargo (WFC) are our favorites, with the latter being Jim Cramer’s top pick in the portfolio. The banks are positioned to do well in the current high interest rate environment, which seems likely to continue with the Federal Reserve adamant on tamping down inflation at all costs . 2. We’re making 1 sale and 2 buys We also saw pockets of opportunities in other stocks on Tuesday, and took the chance to make some trades . We added to our positions in Danaher (DHR) and Estee Lauder (EL) and trimmed our position in Marvell Technology (MRVL). Our sale of MRVL is in line with our belief that we need to reduce our exposure to semiconductors. We bought more shares of EL because we know that China will eventually reopen its economy, which should jumpstart growth. We decided to buy DHR on the dip since it’s rarely down, and we believe that it is the premier company in the medtech industry. 3. Don’t sell CRM into strength Activist investor Starboard has taken a stake in Salesforce (CRM), with founder Jeff Smith stating that the enterprise software maker has a “subpar mix of growth and profitability,” and he sees a significant opportunity in the company. The company’s stock gained 4.3% early Tuesday. We believe that this is ultimately good news and investors should not sell shares of CRM into strength. While the company faces tremendous challenges, including the strong U.S. dollar and a stock that’s down more than 40% this year, we believe it will report a good next quarter. Moreover, we care about where a stock is headed, not where it’s coming from, and we believe Starboard’s stake in the company will continue to take shares of CRM higher. Regardless of the problems CRM faces, it remains an incredibly profitable company and we are bullish on the stock. (Jim Cramer’s Charitable Trust is long CRM, DHR, EL, MRVL, MS, WFC. 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.
