Jim Cramer, portfolio manager of the Action Alerts PLUS charitable trust portfolio, discusses the recent AAP portfolio move out of Schlumberger (SLB) and Starbucks (SBUX). When asked if the sale of Starbucks was because of profit-taking, Cramer confirmed and added that they are trimming some on ‘this great news about price increases.’ Cramer wanted to ‘take a little bit off the table,’ realize some gains, and not get greedy with the premium coffee seller given that they are selling at 45% above their cost basis. As to Schlumberger, Cramer said it ‘was a repositioning’ for the portfolio given AAP’s view that oil will be going lower. Cramer tells investors that when the price of oil drops back down to the $40 range that AAP will ‘reposition and buy the ones that we think represent the greatest value.’ Right now Cramer thinks that some of those opportunities will be Occidental Petroleum (OXY) because of its 4.5% yield and EOG (EOG) because of its growth, however Cramer says that AAP is well positioned in Marathon (MRO) given the current weight of the portfolio in the stock.
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