Cramer's Morning Take: Trimming Stocks 5/4/23

Jim Cramer (0:02)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting.

We have been going about our thing, which is that we said that there was a gauntlet we had to go through. We've now gone through the Fed, and we've got Apple tomorrow night, which we are concerned about. We have employment on Friday, and then we have the debt crisis. So we have felt the need to raise cash, and we are still doing so. Now we had a little stub of Qualcomm that we kept. Really, one of the things I learned as a portfolio manager, keep a little something on to follow it. Not a significant point, but we knew that it had to go.

We'll give more on that in a second. We had to trim Salesforce because it's been a remarkable story. It's up so much. Good place to raise cash to get us above 10%.

Jeff Marks (0:45)

Getting a nice bump today on this.

Jim Cramer (0:47)

Yes, on AI.

Jeff Marks (0:48)

On this generative AI into the stack as well.

Jim Cramer (0:50)

Right, I thought that was a very good reason to get rid of it, frankly, because we need a little enthusiasm to go. And then one that I'm going to miss a little is we did Charles and Procter and Gamble because it's rallied so much, it's now a huge position.

Jeff Marks (1:01)

Yes, we'll try and do that tomorrow when our restrictions allow us, but the stock is around the 52-week high today. That group has been really resilient lately, which is nice, especially ahead of this Kenview IPO that they're celebrating on the floor today.

Jim Cramer (1:14)

I always feel good. I was down here.

People kept saying, listen, Jim, I want to buy, I want to sell Procter. And I said, no, Procter's my favorite at the time. Well, when it's your favorite and it goes up like this, you have to, unless it's Apple, take some off.

Jeff Marks (1:29)

So now, through our sales today, cash will be around 11%. We were close to 7% about a week or two weeks ago.

But we want to raise cash, just keep a lot of dry powder available in case.

Jim Cramer (1:44)

We've only gone through one part of the gauntlet. We've got three more.

Jeff Marks (1:48)

And then we'll start buying back some of our favorite names. Of course. The market is not oversold yet, according to the oscillator, waiting for that as well. So the bat is on the shoulder.

Jim Cramer (1:58)

Right. I mean, and this is why we trim some Starbucks. We trimmed, obviously, Estee Lauder. We feel more confident about Estee Lauder. Not something you need to jump into.

AMD, not something you need to jump into. But we feel confident. Starbucks is the one, believe it or not, I feel the most confident.

Start your day with my outlook on the daily market every morning at 10, 20 a.m. Visit cnbc.com/morningtake to access all the benefits of being a CNBC Investing Club member.

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Jim Cramer (3:13)

Cramer.