Some big changes were made to the Action Alerts PLUS portfolio this week as the position in Kinder Morgan (KMI) was closed and new positions were opened. Jim Cramer and Rhonda Schaffler sat down to discuss these changes. AAP, having started a position in Starwood Hotels (HOT) last week, has added to its position in the leisure business. In the Weekly Roundup, Jim Cramer and Jack Mohr write that ‘Our thesis is rooted in our belief that the company is benefiting from a favorable supply/demand dynamic in the U.S. and the organic global growth in travel, which supports its large international exposure long term.’ Cramer, in his conversation with Schaffler said that Adam Aron, the current CEO at Starwood Hotels, is making some big changes at Starwood, but whether he decides to split or sell the company, one thing is for certain, ‘he’s just not going to sit there. And that is why you’ve got to own it.’ Similarly, AAP increased its position in 3M (MMM) to which Cramer attributed to the current CEO, Inge Thulin. In the past AAP has been buying and selling 3M but Cramer says ‘those days are done,’ citing Thulin’s long term vision and potential for tremendous growth as the reason for his conviction. Cramer says that he views 3M as a ‘Warren Buffett stock’ in that it is ‘a good stock, at a good company, at good prices.’
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