Cramer is worried about Broadcom’s stock action, plus Honeywell’s upgrade
Every weekday, CNBC Investment Club with Jim Cramer hosts a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Monday’s highlights. 1. Stocks rose on Monday; All three indices reached intraday record levels again due to the decrease in trade tensions between the USA and China. But a series of merger and acquisition deals for Jim Cramer announced today shouldn’t be ignored. Stating that the high transaction frequency is good news for the bank, Jim said, “In total, they say buy Goldman Sachs.” Jim says Nvidia will be a big winner on trade [today] Jim is frustrated with the government’s restrictions on chip exports. Meanwhile, the S&P 500 Oscillator is officially in overbought territory. We reduced Eaton’s industrial holdings on Friday and sold part of our Danaher position this morning. 2. Honeywell was upgraded from neutral to buy equivalent rating by RBC. Analysts cited strong third-quarter earnings that “reinforced confidence.” RBC compared Honeywell to GE, which also increased in value after a three-way split. Honeywell’s Advanced Materials subsidiary Solstice begins trading on Thursday. Jeff Marks, the Club’s director of portfolio analysis, said the Club would have a small position but would “prefer to buy a little bit more from the parent company, Honeywell.” $415 at Melius. In a note sent to customers, analysts said the Broadcom-manufactured Google TPU has become a serious competitor for Nvidia’s GPU. Software name Anthropic was the mysterious company that struck a $10 billion deal with Broadcom to use these TPUs; this was a win for both Google and Broadcom. Despite the stock’s rally, Jim isn’t a fan of Broadcom’s current chart pattern. “This looks exactly like the 1999, 2000 model. You’d have something big. It would be a hot stock and then you’d pour money into it,” Jim said. “I don’t like this model.” 4. At the end of the video, Monday’s rapid fire stocks were: Five Below, Berkshire Hathaway, Booking Holdings, Novartis and Keurig Dr Pepper. (Jim Cramer’s Charitable Trust has long held AVGO, DHR, ETN, GS, HON, NVDA. See here for a full list of stocks.) If you subscribe to the CNBC Investment Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trading alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY DISCLAIMER. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.
