We’re booking a 375% gain in a stock to raise cash for unloved names
We are selling 25 shares of Broadcom at roughly 418.57. Following the trade, Jim Cramer’s Charitable Trust will own 365 shares of AVGO, decreasing its weighting in the portfolio to roughly 4% from 4.30%. Semiconductor stocks are having another strong day in the market, thanks to Intel’s positive commentary about central processing unit (CPU) demand in the agentic AI era. The Philadelphia Stock Exchange Semiconductor Index, also known as the SOX, has gone completely parabolic, extending its rally to an 18th straight session. It’s climbed roughly 50% over that stretch. We’re not trying to chase the chip stocks after a run of this magnitude. Instead, we’re lightening up on some of our big positions, locking in hefty gains in the process. On Thursday, we trimmed our stake in Qnity Electronics , a critical materials supplier to the semiconductor industry. Around the time of our sale, Qnity’s stock was up 78% year to date. Now on Friday, we’re trimming our Broadcom position for the third time in the past two weeks. Although Broadcom isn’t participating in Friday’s rally, the stock is still on pace for another good week, with shares up about 2%. Broadcom has rallied roughly 5% from our previous sale on April 15. Jim said on our Monthly Meeting a week ago that he wanted to take more shares off on the next 5% move, and here we are. The cash raised for this sale will help support more buys of stocks that have fallen out of favor. The chips are taking a lot of oxygen in the market, which we are enjoying through numerous positions. However, the money coming out of other companies with strong outlooks could create opportunities to snap up more shares at attractive levels. From this Broadcom sale, we will realize a gain of 375% on stock purchased in September 2023. (Jim Cramer’s Charitable Trust is long AVGO and Q. 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.
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