We’re Scooping Up Shares of a Chip Company and a Well Positioned Retailer
| Symbol | Transaction Type (Sell/Buy) | # Shares Traded |
|---|---|---|
| AVGO | BUY | 33 |
| COST | BUY | 15 |
After you receive this alert and when the market opens, the Portfolio will make the following trades:
Buy 33 shares of Broadcom ($AVGO) at or near $369. Following the trade, the Portfolio will own 588 AVGO shares, roughly 3.43% of its assets.
Buy 15 shares of Costco ($COST) at or near $935. Following the trade, the Portfolio will own 230 COST shares, roughly 3.4% of its assets.
Following our opening comments on Friday morning about Broadcom and the reminder we shared about its AI silicon prospects, as well Apple ($AAPL) chip revenue, and the abrupt fall in the stock, we are picking up a few more shares for the Portfolio. There is the risk that the “only one can win” mentality we’ve seen across Wall Street means we may be a tad early given the timing of quarterly results next week from Nvidia ($NVDA) and Marvell ($MRVL), but we’re inclined to play to long game with AVGO shares as well as NVDA and MRVL.
Given the discussion over cash-strapped consumers had in those same opening comments, we continue to see Costco taking market share away from other retailers. As we pointed out when comparing Walmart’s ($WMT) July quarter U.S. comp sales against the monthly adjusted comp sales figures for Costco, it’s pretty obvious. We can say the same when we compare those same monthly adjusted U.S. Costco figures against the 3.1% adjusted July quarter comp sales reported by BJ’s Wholesale ($BJ) on Friday morning.
As we make these trades, we will reset our respective checkpoint levels for AVGO and COST shares to $330 and $900.
And to head off a potential question or two, our bite sizes on Friday are on the smaller side for two reasons. One, should we see a snap back in these stocks that leads them to bump up against our position size limits, we do not want to be forced to trim them back prematurely. Second, as we discussed with you on Thursday, there are several other holdings in the Portfolio we are stalking and we want to ensure we have ample cash on hand to be opportunistic.
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(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade’s executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro was long AAPL, AVGO, COST, MRVL and NVDA.
| Symbol | Panic Price |
|---|---|
| AVGO | 330 |
| COST | 900 |
