We’re buying 50 shares of Capital One at roughly $155 each. Following Tuesday’s trade, Jim Cramer’s Charitable Trust will own 450 shares of COF, increasing its weighting to about 2.4% from 2.15%. A little bit of patience went a long way. Most of Tuesday’s stock market gains were wiped out as investors struggled with where things stand on trade deals as Wednesday’s tariff deadline nears. The trading action is a prime example of why we are always cautious about chasing huge upside swings that lack real news. Yes, there was optimism earlier, but we know how quickly headlines can change in this market. We’re reluctant to pick at more than this small buy because we see how quickly the market rolled over. But the good news is that we have plenty of cash on hand to get constructive as these prices come down. COF 1Y mountain Capital One 1 year The stock we are nibbling on is Capital One. Shares are down about $10 since we learned that the Justice Department does not plan to block its Discover acquisition. This was a big milestone and a key regulatory hurdle the company had to get through before the Federal Reserve and Office of the Comptroller of the Currency could approve the deal, which we think is likely. The market has ignored this good news — and we’re taking advantage of the opportunity. While Capital One shares have been beaten up lately on concerns about a consumer spending slowdown and a possible recession – and those fears are valid – the company is well reserved and the expected deal-related synergies will push its earnings higher. (Jim Cramer’s Charitable Trust is long COF. 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.
