We're Ringing the Register on a Big Tech Play, Buying More of Another Holding
The net effect of these trades leaves us well prepared for a potential 'buy the rumor, sell the news” Fed meeting outcome next week.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
GOOGL | Sell | 77 | 239.75 | 911 | 4.0 |
WM | Buy | 84 | 218.75 | 804 | 3.22 |
After you receive this Alert, the Pro Portfolio will make the following trades:
-- Sell 77 shares of Alphabet GOOGL at or near $239.75. Following the trade, GOOGL shares will account for roughly 4.0% of the Pro Portfolio.
-- Buy 84 shares of Waste Management WM at or near $218.75. Following the trade, WM shares will account for roughly 3.22% of the Pro Portfolio.
Earlier this week, we shared that if the market climbed further, we may elect to do some prudent trimming of a position or two that have made outsized gains of late and are deep in overbought territory.
With GOOGL's RSI (relative strength index) flashing north of 80, indicating the shares are deeply overbought, and the stock up more than 47% from late June, we are opting to ring the register once again on GOOGL. We see this small move as a prudent one heading into what could be a “buy the rumor, sell the news” Fed event next week.
After the trade, the Pro Portfolio’s position in GOOGL will remain a sizable one, and Alphabet should continue to benefit from AI adoption, Google Cloud gains, and video monetization at YouTube as streaming continues to win out over broadcast and cable.
While this new buy will miss today’s record date for Waste Management’s upcoming quarterly dividend, which will be paid on September 26, the move will build up our exposure for future dividends. The combination of favorable pricing and expanding automation for the very sticky residential waste business, and grinding synergies out of its WM Healthcare Solutions should allow Waste Management to remain on the path of increasing dividends it's been on for more than 20 years.
The relatively even swap we are making should keep the Pro Portfolio’s cash position size above 10%, maintaining our firepower so we have the option to be opportunistic if next week’s Fed meeting is indeed a “buy the rumor, sell the news” event.
(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 GOOGL and WM.
