Investing Club: We're building up our positions in these two value tech names

Published Mon, Apr 11 202212:29 PM EDTUpdated Mon, Apr 11 202212:33 PM EDT

As discussed on Monday's Morning Meeting , we're adding to our positions in two technology holdings. We're buying 200 shares of Cisco Systems (CSCO) at roughly $53.11 per share, and 100 shares of Meta Platforms (FB) at $217.75 per share. Following Monday's trade, the portfolio will own 1,355 shares of Cisco Systems and 220 shares of Meta. That increases Cisco's weighting to about 2.2% from 1.88% and Meta's weighting to about 1.45% from 0.8%. Sales in our higher-flying semiconductor holdings Nvidia (NVDA) and Advanced Micro Devices (AMD) Monday, along with a trim of Marvell Technology (MRVL) last Wednesday, raised the cash we are now redeploying into our "value" tech names. We're repurchasing shares of Cisco that the Club previously sold at around the $56 level. Meta, meanwhile, is trading at the lowest valuation seen for shares since Facebook went public in 2012. Both names are attractive on their current valuations and have significant buyback programs in place. Cisco also boasts a 3% dividend yield. Regarding Cisco, we remind members that at the time of our sale and downgrade on March 31 we called out the sub-$54 level — below our overall cost basis — as a price level we would look to add back to our position. With shares pulling back about 5% since that sale we are now getting that opportunity. With this buy, we are also upgrading shares of CSCO back to a 1 rating. As for Facebook, we have kept the position small. However, we believe that with any negatives from its competition with TikTok are already priced in, and that now is the right time to build up our position. We also believe that the company will effectively compete against TikTok and that following a focus on Reels engagement, that monetization will follow – just as it did with Stories. Moreover, as was the case with Stories, we believe this Reels-related weakness will also prove to be a longer-term buying opportunity. Lastly, while we are not taking action just yet, we are keeping a very close eye on shares of Qualcomm (QCOM) which we continue to find attractive for the longer term because it is cheaply priced and pays a solid dividend. We're standing down for the time, and will maintain our 2 rating , acknowledging that the broader semiconductor space is under pressure, and even a great house isn't the best buy if it is in a bad neighborhood. (Jim Cramer's Charitable Trust is long CSCO, FB, MRVL, QCOM. 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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