Shortly after the opening bell, we will be selling 60 shares of Capital One Financial at roughly $242.88. Following the trade, Jim Cramer’s Charitable Trust will own 550 shares, decreasing its weighting to about 3.50% from about 3.90%. We’re following up on Thursday’s Homestretch by trimming our position in Capital One. This stock has been one of the strongest in the portfolio over the past three weeks, and we’re locking in big gains after this move. The stock, which closed at a record high on Thursday, has rallied 20% since the close on Nov. 20, outperforming the S & P 500’s gain of about 3.5% over the same time frame. We remain bullish on Capital One next year, as we expect the credit card issuer to realize additional cost and revenue synergies from its blockbuster Discover acquisition — a key part of our thesis — as well as increased share buybacks. That’s why we’re maintaining a large position and not selling more on Friday. However, we acknowledge risks tied to higher-than-expected investment needs to support the Discover deal or a deterioration in consumer credit. From this sale, we will realize a great gain of about 36% on stock purchased in March. (Jim Cramer’s Charitable Trust is long COF. 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.
We’re locking in profits on a stock that has gone on a tear lately
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