Jim Cramer recommends several stocks on his show but his actions speak louder than his words. The transactions he makes for his charitable trust are indicative of what he is truly bullish about. Cramer’s charitable trust, Action Alerts Plus, recently sold two significant positions in energy and tech while initiating two interesting positions in oil and precious metals. Here are the trades.
Accenture (ACN): Charitable trust sold all 400 shares of this global management consulting and technology service organization’s stock. Accenture has a $37 billion market cap, trades at 17 times earnings and yield’s 1.7%.
With ACN trading around $10 off its 52-week high, it may have been a good time “to ring the register” and take profits from a company whose industry may not perform well should the country head back into recession. George Soros of Soros Fund Management also sold his entire position in Accenture (see more of Soros’ holdings).
Hess Corporation (HES): The entire 400 share position in Hess was also dumped by Cramer's charitable trust. This Delaware-based global integrated energy company is trading $30 down from its 52-week high. Despite ticking slightly higher because of oil’s rebound, the stock is not performing as well as other companies in the sector. Hess Corporation has a $20 billion market cap and trades at 7 times earnings. HES represents 3.55% of T. Boone Pickens’ portfolio (see more of Pickens’ stocks here).
Chevron (CVX): Cramer's charitable trust recently initiated a 500 share position in the oil company Cramer has been recommending for weeks. Cramer repeatedly expressed admiration for Chevron’s growth prospects and ConocoPhillips (COP) for its 4% yield.
Chevron has a $196 billion market cap and only trades at 8.5 times earnings while yielding 3.15%. Bill Miller of Legg Mason Capital Management increased his position in Chevron by 59%. It now represents 1.5% of his entire portfolio (see more of Miller’s picks here).
iShares Gold Trust ETF (IAU): Action Alerts Plus purchased 1,000 shares of iShares Gold Trust ETF, initiating a new position. Cramer consistently recommends playing precious metals with ETFs. Cramer didn’t really recommend the mining companies recently because they are prone to business blunders, bad management, significant overhead and more. Instead he recommended GLD. IAU has an $8.5 billion market cap and is trading close to its 52-week high of $18.53 per share.
It may seem ironic that Cramer's charitable trust would purchase a position of the iShares Gold ETF when he repeatedly tells his viewers that the SPDR Gold Trust ETF (GLD) is the best way to play gold. One reason for his lack of GLD in this portfolio could be the five day trading restriction.
Cramer's charitable trust cannot buy or sell any stock he mentions on CNBC for five days after the mention. The extreme volatility of the market as of late makes the need to recommend owning gold essential. With the SPDR Gold Trust ETF getting a mention nearly every day, the iShares might have been the only way for Cramer to get the precious metal into his charitable trust's portfolio.
Disclosure: I am long COP, physical gold.