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Shortly after the opening bell, we will be buying 50 shares of Palo Alto Networks at roughly $167.25 and 75 shares of Starbucks at roughly $92.12. Following the trades, Jim Cramer’s Charitable Trust will own 360 shares of PANW, increasing its weighting to about 1.65% from about 1.42% and 1,075 shares of SBUX, increasing its weighting to 2.75% from about 2.50%. Now that our trading restrictions have cleared, we can finally add to our positions in Starbucks and Palo Alto Networks. We’ve been talking about these trades for a while now. However, when Jim Cramer mentions a stock on TV, we’re restricted from trading it for the next 72 hours. That’s what kept us from acting. We first wanted to buy Starbucks after it fell in response to earnings despite confirmation that CEO Brian Niccol’s turnaround plan was ahead of schedule. For Palo Alto Networks, we upgraded our rating to a buy-equivalent 1 when the company announced it was buying CyberArk for $25 billion. The deal was met with a poor reaction due to the size of the transaction and general uncertainty around M & A execution. But the strategic rationale is clear. By adding CyberArk’s leading identity and access management solutions, Palo Alto Networks will have leadership in a highly fragmented market that it can gain share in by cross selling across its base of 70,000 customers. We reiterated our plan to buy as the stock continued to drop in reaction to the deal and then later on a disappointing outlook from cyber peer Fortinet. We said the selling in Palo Alto Networks — and fellow Club cyber holding CrowdStrike — based on Fortinet’s commentary was undeserved . (Jim Cramer’s Charitable Trust is long SBUX, CRWD and PANW. 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.
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