We will sell 165 shares of Best Buy stock at approximately $86 per share. Jim Cramer’s charitable trust will hold 600 shares of BBY stock after Wednesday’s trade, reducing its weighting from 1.9% to about 1.5%. Best Buy shares have been falling steadily since October amid concerns about electronics retail sales and the potential for higher tariffs on Chinese goods from President-elect Donald Trump’s new administration. Best Buy’s business also includes real estate, which needs a pickup in home sales to supplement sales of big-ticket items like appliances and home entertainment systems. We pared our position in late October when Best Buy was trading around $90 a share as mortgage rates moved higher despite the Fed’s rate cuts. BBY YTD Mountain Best Buy YTD However, on Wednesday, we sold some Best Buy stock for another reason: discipline. We don’t want to break the discipline that turns hard-earned gains into losses. Some of the problems Best Buy faces, such as stubborn mortgages and artificial intelligence PCs that may not sell as well as initially hoped, may be temporary. However, we can’t risk our profits if same-store sales inflection point decelerates when the company reports earnings next Tuesday. That’s why we pared our positions even further – locking in gains of around 8% on average for stocks bought in early 2024. If there’s one trend so far this retail earnings season, it’s that giants including Walmart and club names Amazon and Costco are winning and taking significant market share. Target’s third-quarter profit fell short of target, causing its stock price to fall. Its stock price fell more than 20% on Wednesday. Not everything will be disrupted like discount retailer and club holding TJX Corp. or specialty retailers like Williams-Sonoma. But we have to admit that Best Buy competes with the Big Three in electronics. (Jim Cramer’s Charitable Trust Buys BBY, AMZN, COST, TJX. See here for a full list of stocks.) As Jim Cramer’s CNBC Investing Club As a subscriber, you will receive trade alerts before Jim Cramer trades. Jim waits 45 minutes after sending a trade alert before buying or selling stocks in his charitable trust portfolio. If Jim talked about a stock on CNBC TV, he would wait 72 hours after issuing a trade alert before executing the trade. The investment club information above is subject to our Terms and Conditions and Privacy Policy and our Disclaimer. No fiduciary duty or obligation is created or created by any information you receive in connection with the Investment Club. No specific results or profits are guaranteed.
To protect hard-earned profits, we cut stocks again under pressure | Real Time Headlines
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