The writer has decided to purchase 100 shares of Best Buy at around $74.11, which will increase Jim Cramer’s Charitable Trust’s ownership of BBY to 1,000 shares and raise its weighting from 2.12% to 2.35%. This decision was prompted by the fact that Best Buy’s share price has fallen below the level of the last purchase, offering an opportunity to buy more shares and lower the overall cost basis. The rationale for increasing the position in the electronics retailer remains unchanged, as the writer anticipates a rebound in PC demand following the Covid-19 pandemic, with many consumers potentially looking to upgrade their hardware for new features like AI-powered computers. Recent earnings releases from tech companies such as Microsoft also indicate an uptick in Windows OEM sales, signaling a recovery in PC market volumes to pre-pandemic levels. While waiting for this rebound to materialize, the writer is gradually adding to their position at more attractive share prices, all the while benefiting from a solid 5% dividend yield.
As a subscriber to the CNBC Investing Club with Jim Cramer, individuals receive a trade alert before Jim makes a trade. Following the issuing of a trade alert, Jim waits 45 minutes before executing a trade in his charitable trust portfolio, or 72 hours if he has discussed the stock on CNBC TV. It is important to note that the information provided by the Investing Club is subject to terms and conditions, privacy policy, and disclaimer. No fiduciary obligation or duty is created by receiving this information, and there is no guarantee of a specific outcome or profit. Investors should be aware that the yield on Best Buy’s shares is already attractive, even in a higher-rate environment, but may become even more appealing if interest rates decrease, potentially attracting more buyers to the stock. Overall, the decision to buy more shares of Best Buy is based on the belief in a forthcoming rebound in PC demand, supported by recent industry trends and company earnings reports.
The writer’s decision to increase their position in Best Buy aligns with their expectation of a recovery in PC demand, driven by consumers looking to upgrade their hardware after the Covid-19 pandemic. It is noted that consumers typically wait about four years before replacing or upgrading their PCs, especially when they are essential for work purposes. Additionally, the introduction of AI-powered computers presents a new reason for consumers to update to the latest models. Recent reports of growth in Windows OEM sales from companies like Microsoft further support the writer’s belief in a PC market rebound, as sales volumes recover to levels seen before the pandemic. This optimism is reflected in the gradual accumulation of shares at favorable prices, offering the writer a 5% dividend yield while waiting for the anticipated recovery to materialize.
Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts before any trades are made, with Jim waiting a specific period before executing a trade in his charitable trust portfolio. The issuance of a trade alert is subject to terms and conditions, privacy policy, and disclaimer, with no guarantee of any specific outcome or profitability. Investors are reminded that there is no fiduciary obligation or duty created by the provision of information through the Investing Club. The writer emphasizes the importance of understanding the investing landscape and being aware of potential market shifts, such as changes in interest rates, which can impact the attractiveness of dividend yields. The decision to purchase more shares of Best Buy is informed by the writer’s confidence in a rebound in PC demand, supported by industry trends and recent company performance, positioning them for potential growth in the future.
