Immediately after the opening bell, we buy 35 shares of Ge Vernerova for around $418.25. Following Monday’s deal, Jim Kramer’s Charitable Trust owns 80 stakes in GEV, increasing its weight from 0.55% to about 1.0%. The S&P 500 showed about 1% lower, with Treasury yields rising after Moody’s downgraded US credit rating from the highest AAA to AA1 later on Friday. Moody’s is the last of three major credit rating agencies, downgraded the US from its Triple A rating. Standard & Poor’s reduced the rating in 2011, and Fitch downgraded the US in 2023. However, this decline was not in 2023. The downgrade of the S&P was far more shocking than Fitch’s move. So the third time is not a complete surprise. So the market’s response to Moody’s announcement on Friday may now be more muted compared to 2023 and 2011. The market thought there was some type of pullback planned. So last week I raised extra cash from the discipline of the S&P short-range oscillator. With the extra cash on hand, we are taking advantage of this market weakness and adding to Ge Vernva’s small position. Last Tuesday, I started a small position at the energy equipment manufacturer. We purposely started positioning on the small side, hoping for a pullback. As that happened, we are taking advantage of the opportunity to add stocks. Gev YTD Mountain Ge Vernova The rapid expansion of YTD data centers, expansion of manufacturing activities, industrial electrification and the rise of electric vehicles require an increase in investment in reliable electricity and grid infrastructure. Through its power and electrification operations, Ge Ververnova is seeing a flood of orders that meet its demand. The company has so many businesses that it thinks it will be sold out most of it in 2026 and 2027, but in 2028 it is beginning to fill out what the company considers to be a “longer” gas market. He also noted that the company could become the winner of trade contracts as the country works with the trade regime to reduce the trade deficit. This view was quickly proven true. The company was also one of the big winners from President Donald Trump’s trip to the Middle East. As part of Saudi Arabia’s pledge to invest $600 billion in the US, the kingdom agreed to purchase $14 billion worth of gas turbines and energy solutions from Ge Ververnova last Tuesday. (Jim Cramer’s Charitable Trust is a long GEV. For a full list of stocks, see here.) As a subscriber to Jim Cramer and CNBC Investing Club, you will receive a trade warning before Jim makes a transaction. Jim waits 45 minutes after sending a trade alert before purchasing or selling stocks in the Charitable Trust portfolio. If Jim talks about stocks on CNBC TV, he will wait 72 hours after issuing a trade alert before running the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with the disclaimer. Due to receiving information provided in connection with the Investment Club, there is no obligation or obligation of the fiduciary. No specific outcomes or benefits are guaranteed.
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