Naughty Flicks

Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuWe are buying 75 shares of Bank of New York at roughly $150. Following the trade, Jim Cramer’s Charitable Trust will own 750 shares of BNY, increasing its weight in the portfolio to 2.85% from about 2.56%. Today’s purchase allows us to increase our position size while lowering our average cost basis. The trust bank reported better-than-expected earnings two weeks ago, helping end a slide that began in September and continued into October. The results reinforced our thesis that the bank will continue to deliver positive operating leverage, with revenue growing faster than expenses. BNY shares have rebounded since earnings but are still down about 10% from their September closing high of $164.84. We picked up some shares at roughly $138 on Oct. 15, the morning the bank reported, and we’re nibbling again to build out the position. The stock’s valuation is attractive here, trading at an undemanding price-to-earnings multiple of just 14.4x when looking out to 2027 numbers, according to FactSet. The stock can move higher as BNY wins more client business, driving stronger earnings growth, while a higher mix of fee-based revenue could support P/E multiple expansion. (Jim Cramer’s Charitable Trust is long BNY. 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.Read More