Disney gets a win in Nelson Peltz board fight. 2 other portfolio stocks mount comebacks

by Pelican Press March 18, 2024

by Pelican Press March 18, 2024 69 views 5 minutes read

Disney gets a win in Nelson Peltz board fight. 2 other portfolio stocks mount comebacks

Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. (We’re no longer recording the audio, so we can get this new written feature to members as quickly as possible.) Markets bounce : Stocks kicked off the new trading week on a higher note, driven by strength in the mega-cap tech stocks ahead of Nvidia ‘s GTC conference and reports that Apple may partner up with Alphabet to bring the Gemini AI model to the iPhone. The report is easing concerns about Gemini’s credibility and sending Alphabet shares to their highest levels since early February. Disney gets a win : A major proxy advisor weighed in on the Disney -Trian board battle. Glass Lewis said Monday it recommends Disney shareholders vote for the company’s director nominees and not the slate forth by Trian’s Nelson Peltz. Disney’s annual meeting is April 3. Although the Glass Lewis decision is a potential setback to Trian’s chances of getting enough votes to put Peltz and former Disney CFO Jay Rasulo on the board, Jim Cramer still sees the merits of this contest. “Disney’s board is dysfunctional but the stock’s going higher because of the activist pressure. The pressure is good. Nelson was valued as a board member at Procter & Gamble , Mondelez , and Heinz . I don’t get the aversion. But the stock is going higher.” The comeback kids: GE Healthcare climbed back above $90 per share and has put together two positive sessions in a row. It’s a good sign considering the stock fell roughly 3.6% last Wednesday to $88.48 after General Electric announced a sale of 14 million shares through a second offering. “GE Healthcare almost digested the GE block. The company works closely with Nvidia on AI. Nvidia mentions the company in its health-care work,” Jim said. Shares may also be getting a boost from signs that China has provided stimulus for hospital and teaching equipment. Analysts at Evercore ISI wrote about this last Friday, noting it should also provide a lift to life science tools companies like Club name Danaher . Another recovery in the making is DuPont , which needs to get to $74.69 to fully recover all its losses tied to an awful preannouncement in January. The company’s management team recently spoke at a few investor conferences, noting that orders have picked up to the low double digits from 8% when they reported. That order growth provides visibility into a quarter that will be the bottom for its Water & Protection business. But Electronics is the best part of the company’s growth story and perhaps this recent comeback is also about the strength it is seeing there. Jim said, “DuPont must be seeing green shoots in cellphone. Maybe Samsung.” Keep in mind, DuPont also has exposure to more advanced chips, with Taiwan Semiconductor Manufacturing being one of its key customers. Quick hits : “Worries about GLP-1 usage impacting beverage and snacks group may be receding with the PepsiCo upgrade. It’s a good sign for those who are worried about Constellation Brands , which has been a real horse lately,” Jim said. Citi opened a “positive catalyst watch” on Constellation Brands last Wednesday. Separately, Jim said, “I am looking at Cloudflare . They hired Stephanie Cohen, who is brilliant, from Goldman Sachs .” Cohen has reportedly left the investment bank to become Cloudfare’s chief strategy officer. Up next: The focus at 4 p.m. ET will be on Nvidia CEO Jensen Huang. That’s when he’s expected to take the stage at the AI chip giant’s annual GTC developers conference. While there’s plenty of anticipation around Jensen’s upcoming keynote, Jim said, “There are better days to buy Nvidia than around GTC. Give it a rest.” We can’t wait for Jensen’s sit down with Jim on “Squawk on the Street” on Tuesday and for a two-part interview on “Mad Money” on Tuesday and Wednesday. (Jim Cramer’s Charitable Trust is AAPL, GOOGL, DIS, GEHC, DD, STZ, NVDA. See here for a full list of the portfolio holdings.) 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.

Traders work on the floor during morning trading at the New York Stock Exchange (NYSE) on March 06, 2024 in New York City.

Spencer Platt | Getty Images

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Disney gets a win in Nelson Peltz board fight. 2 other portfolio stocks mount comebacks

Disney gets a win in Nelson Peltz board fight. 2 other portfolio stocks mount comebacks

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