We’re exiting our position in Disney , selling our remaining 375 shares at roughly $106. At the same time, we’re buying 238 shares of Qnity Electronics at roughly $76. Following Wednesday’s trades, Jim Cramer’s Charitable Trust will own 1,050 shares of Qnity, increasing its weighting to 2.2% from about 1.7%. The Trust will no longer own Disney. We’re selling the remaining half of our Disney position and moving on. We sold the first half on Tuesday. Last Thursday, we decided it was time to exit Disney following another disappointing quarter that was mostly plagued by declines in its linear networks business.From this sale, we will realize a gain of about 9% on the last bit of our Disney shares. We’re taking half of the cash raised from the Disney sale to add to the Dupont spinoff Qnity Electronics. Shares of Qnity, a leading provider of technology solutions for the semiconductor industry, have dropped approximately 20% in November and 32% from the high of $100.91 it reached on Nov. 4. The two biggest drivers of this decline have been a giveback in the overall AI trade and general post-spin volatility. Spinoffs usually lead to turnover in the existing shareholder base, and this dynamic can take weeks to months to play out. Also, investors may be waiting for analysts to cover the stock so that there’s more information at their fingertips. We should point out that the initial reviews of Qnity have been overwhelmingly positive, with eight buys and one hold by the Street, with an average price target of about $108. Our target on Qnity is $110. Most importantly, the fundamentals at Qnity have been strong. That’s why we see this weakness as an opportunity to buy more shares. The company’s third-quarter results were solid, with net sales increasing 11% year over year. Management also raised its full-year net sales outlook by about $100 million to $4.7 billion due to increased AI adoption and more transitions to advanced nodes and architecture. (Jim Cramer’s Charitable Trust is long Q. 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.
