Buying More of These 2 Holdings With Dividends Ahead
We're putting more cash to work but have ample powder ahead of Powell's Jackson Hole comments.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
SSSS | Buy | 5,300 | $8.50 | 19,000 | 3.0% |
WM | Buy | 100 | $225.25 | 720 | 3.0% |
After you receive this alert, we will make the following trades:
-Buy 5,300 shares of SuRo Capital SSSS at or near $8.50. Following the trade, the Portfolio will own 19,000 SSSS shares, roughly 3.0% of the Portfolio.
-Buy 100 shares of Waste Management WM at or near $225.25. Following the trade, the Portfolio will own 720 WM shares, roughly 3.0% of the Portfolio.
We are taking down more shares of SuRo Capital and Waste Management, both of which have been on the latest shopping list we’ve discussed with you. While we still have some room to expand the Portfolio’s positions in both of those stocks, with our move on Monday to pick up shares of ServiceNow NOW, shares of Palantir PLTR and Axon AXON remain on our near-term shopping list.
Following these moves, the Portfolio’s cash position will be around 11% of its assets, which still offers us ample firepower should Fed Chair Powell’s Jackson Hole comments on Friday upset the market.
Lifting Price Target, Upgrading SuRo Shares
Our move with SSSS shares comes after the lockup expiration of CoreWeave shares late last week and is one that aims to increase the Portfolio’s exposure to SuRo’s forthcoming dividend stream. We see that stream reflecting current quarter monetization of SuRo’s holdings in CoreWeave CRWV and GrabAGun Digital Holdings (PEW). Exiting the June quarter, those two positions accounted for about 26% of SuRo’s investment Portfolio. PEW shares were listed on the NYSE on July 16.
As we make this move, we are also lifting our SSSS price target to $10 from $9.25 to reflect the company’s position in OpenAI, its second-largest portfolio position exiting the June quarter. Reports indicate that current and former OpenAI employees plan to sell approximately $6 billion worth of shares to an investor group in a deal that values OpenAI at $500 billion. While this increases the potential price return for the Portfolio’s SSSS position, we would remind you that our play with the shares remains a total return one. However, the upside we see on the price return basis alone is enough to warrant upgrading SSSS shares to a One from Two.
While we enjoy the SuRo dividend stream, two items we will be closely following are other companies in its Portfolio filing to go public and the company’s reinvestment decisions. The former will determine 2026 dividend payments, while the latter will lay the groundwork for dividend payments further out. Should we see indications that the SuRo dividend stream is waning, that would be a signal for us to reconsider owning SSSS shares in the Portfolio. Remembering the company’s BDC structure and monetization discussed above, we do not see that happening in the next few quarters.
Scooping Up More Shares of Waste Management
Similar to our move with SSSS shares, we are adding to the Portfolio’s position in Waste Management shares following the very recent pullback from $237.50. This move is in keeping with our Two rating on the shares, and it also increases the Portfolio’s dividend stream.
We continue to favor the company’s sticky residential waste business, which is benefiting from disciplined pricing and further automation efforts, especially as it completes other nip-and-tuck acquisitions. We also like the company’s move into the medical waste business, and we see the team replicating the consolidation and margin-enhancing strategies that have been a hallmark of the waste business.
As we see more progress on those fronts, including signs of stronger margins that could force us to lift our price target, we’ll revisit our Two rating.
More Pro Portfolio
- We're Buying Shares of This Battered AI Software Holding
- AOL Hangs Up on Dial-Up, Shoppers Get Picky, Tech Helps the Old and More Investing News
- Weekly Roundup: Moving Ahead of Powell at Jackson Hole
(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 SSSS, WM, NOW, PLTR and AXON.
