Buying and Selling: Realigning Our Chip Holdings After Downgrade
Here is our roadmap for winding down the balance of this newly four-rated position.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
QCOM | Sell | 600 | $164.25 | 333 | 1.0% |
AVGO | Buy | 155 | $351 | 355 | 2.25% |
CIBR | Buy | 185 | $72.40 | 2,730 | 3.55% |
After you receive this alert, we will make the following trades:
Sell 600 shares of Qualcomm (QCOM) at or near $164.25. Following the trade, the Portfolio will own 333 QCOM shares, roughly 1.0% of the Portfolio.
Buy 155 shares of Broadcom (AVGO) at or near $351. Following the trade, the Portfolio will own 355 AVGO shares, roughly 2.25% of the Portfolio.
Buy 185 shares of the First Trust Nasdaq Cybersecurity ETF (CIBR) at or near $72.40. Following the trade, the Portfolio will own 2,730 CIBR shares, roughly 3.55% of the Portfolio.
Following Tuesday night’s downgrade to a Four rating, we are starting our plan to exit QCOM shares. As we indicated in that downgrade alert, quarterly results and guidance from Taiwan Semiconductor (TSM) could either lead us to accelerate that exit or use any post-earnings strength to do the same. Should we continue to hold QCOM shares past this week, the next known set of catalysts will be quarterly results from Qorvo (QRVO) on January 27, and both Samsung and Apple (AAPL) on January 29.
We are using the proceeds from today’s move to build our exposure to both AVGO and CIBR shares. Unlike Qualcomm, Broadcom’s mix of business favors the AI and data center buildout, ramping custom AI chip demand, and a higher-margin software business. While we recognize AVGO shares are the fifth-largest holding in the CIBR ETF, you have probably noticed, just as we have, that each and every week, we read about fresh cyberattacks. We continue to think AI adoption by bad actors will serve to accelerate existing attack types and result in new ones. That leads us to think cybersecurity spending will remain on an upward trajectory.
When we conclude our exit of QCOM shares, subject to market conditions, we may opt to let the proceeds build up our cash levels, add to an existing holding or two, or begin a position in a new holding. Welltower (WELL) shares, ServiceNow (NOW) and TJX Companies (TJX) are among our smaller individual stock positions, and that lands them on our shopping list.
And in preparation of re-arming the Bullpen, we’ll make some room by removing the shares of Trade Desk (TTD) and T-Mobile (TMUS) .
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(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long AVGO, CIBR, QCOM, AAPL, WELL, NOW and TJX.
