We're buying some more tech and two of our newer stocks in a down market

Published Mon, Aug 29 20229:16 AM EDTUpdated Mon, Aug 29 202210:36 AM EDT

In a down market, we're buying 95 shares of Amazon (AMZN) at roughly $129 each; 50 shares of Qualcomm (QCOM) at roughly $137; 150 shares of Starbucks (SBUX) at roughly $83; and 200 shares of TJX Companies (TJX) at roughly $62. Following Monday's trades, Jim Cramer's Charitable Trust will own 675 shares of AMZN, increasing its weighting in the portfolio to 2.98% from 2.57%; 750 shares of QCOM, increasing its weighting to 3.51% from 3.29%; 425 shares of SBUX, increasing its weighting in the portfolio to 1.21% from 0.78%; and 550 shares of TJX, increasing its weighting in the portfolio to 1.06% from 0.75%. We're buying more Amazon and upgrading our rating to 1 . Shares are down more than 10% since we rated this stock a 2 and trimmed our position in early March on a 20-for-1 stock split and $10 billion buyback announcements . The stock has fallen almost 20% since our sale in early April, which is when we raised a lot of cash and greatly reduced our exposure to tech in response to a more hawkish Federal Reserve . But now we are getting more bullish on AMZN at these lower prices because we are seeing more and more signs that suggest the company is increasing its focus on margin improvement. This first showed up last quarter when Amazon reported operating income that was $1.5 billion more than what was expected, and recent announcements like the peak fulfillment fee of 35 cents per item on fulfilled-by-Amazon items sold in the United States and Canada prove that Amazon has levers it can pull on to offset costs. As Jim Cramer wrote Sunday, the Club is sticking with tech stocks as we believe the end is near. We're adding to Qualcomm , which we upgraded to a 1 last Tuesday . With this buy, we are repurchasing 50 of the 75 shares we sold at around $143 in mid-July . We upgraded our rating to a 1 last week because we think the stock's roughly 11x forward price to earnings multiple does not properly reflect the company's diversification efforts into automotive and internet of things revenue streams. The stock also pays a solid dividend yield of about 2.2%. That may not be a whole lot compared to the 2-year Treasury yield of nearly 3.5%, but we still appreciate receiving some form of a dividend in this rising interest rate environment. We're buying more Starbucks , a newer name for us. We initiated a position last Monday because we believe the investments and improvements interim CEO Howard Schultz is making will improve the company's long-term growth rate. We'll learn more details of the plan at the Sept. 13 Investor Meeting, which we believe could be a positive catalyst for the stock. We're adding to TJX Companies , our newest position. We started buying shares of the company behind T.J. Maxx, Marshall's and HomeGoods on last Wednesday because we think the purchasing environment for off-price retail has never been better. Retailers right now are working frantically to right-size inventory positions and discount items to get them out the door. One way they clear out their excess inventory is to sell merchandise to off-price chains at fire sale prices, which then allows TJX to offer high-quality product and value prices to their shoppers. (Jim Cramer's Charitable Trust is long AMZN, QCOM, SBUX and TJX. 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.

The Nasdaq MarketSite in the Times Square neighborhood of New York, on Tuesday, May 31, 2022.

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