Naughty Flicks

Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuWe’ve waited long enough. We are buying 50 shares of Kimberly-Clark at roughly $95.80 apiece. Following the trade, Jim Cramer’s Charitable Trust will own 515 shares of KMB, increasing its weighting to about 1.24% from 1.12%. We aren’t looking to make a large purchase Thursday, as we acknowledge that the recent moves in oil prices and interest rates have put the stock market in a bit of a precarious position. Nonetheless, the idea is to buy low and sell high. With so many of our non-tech names having taken a beatdown already and seemingly stabilized, we think now is a solid opportunity to get money to work. We’re sitting on a double-digit cash position. Indeed, Jim explained on Thursday’s Morning Meeting that he’s in a buying mood and has a number of stocks on his radar. We’ll start out with shares of Kimberly-Clark, giving ourselves some time to see how the day plays out before deploying more cash. We have waited for it to come down, and in the process, we’re closer to a key catalyst: the completion of the nearly $50 billion Kenvue acquisition, which is expected before year-end. The deal will combine Kimberly-Clark brands such as Huggies and Kleenex with Kenvue’s Band-Aid, Tylenol, and Neutrogena, and we believe the transaction will be very accretive. While we have not been fans of how Kenvue has been run since its spin-off from Johnson & Johnson in May 2023 , we think the company’s brands can perform much better under the leadership of Kimberly-Clark CEO Mike Hsu. Hsu can enhance Kenvue’s warehouse club and e-commerce selling strategies, while increasing international penetration. In this current market, Kimberly-Clark’s 5.3% yield may not be as attractive when the 10-year Treasury note is yielding the same and the 30-year bond locks you into a 5.66% rate. However, the beauty of stocks — and why we still appreciate the yield on Kimberly-Clark — is that we can lock it in now, while keeping exposure to upside in the stock price should our thesis pan out. Kimberly has one of the best brand names in the business, and Hsu has righted the ship. So, at 13 times forward earnings, with shares catching a bid for the third time this year at around the $95 level, now is the time to step in and reduce our overall cost basis. (Jim Cramer’s Charitable Trust is long KMB. 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