During another busy week of earnings and stock market swings, we picked our spots and made six trades, including calling up a Bullpen name. We also changed two Club price targets. Here’s a day-by-day look. Monday The week started with a small Caterpillar (CAT) sale after a huge run and an initiation of a new position in DuPont (DD), which had been on our Bullpen watch list. Shortly after the opening bell, we trimmed some Caterpillar and booked some profits after the industrial giant’s blowout earnings last week. Revenue rose 22% year-over-year in the second quarter and adjusted earnings per share jumped 75%. This was, in part, due to the U.S. government’s increased infrastructure spending . Shares popped 9% on the earnings release, closing that day at a record high of $288.65. The stock was finishing this week just under that level. Jim Cramer’s Charitable Trust — the holdings we use for the Club — owns 315 shares of Caterpillar. Monday’s trade decreased CAT’s weighting to 3.03% from 3.26%. in our portfolio. Monday afternoon, we bought 375 shares of DuPont. The specialty chemical maker has a 1% weighting in the Club’s portfolio. DuPont has an attractive growth story for 2024. Management said during their second-quarter earnings call that the bottom in the company’s semiconductor business is here, a similar narrative we’ve heard in the industry landscape more broadly. We like the idea of exposure to semiconductors at a lower industrials multiple rather than the higher chip-stock multiple. Tuesday We added shares of Coterra Energy (CTRA) in the morning and purchased more Stanley Black & Decker (SWK) in the afternoon. We bought more Coterra on Tuesday’s dip, one day after the oil and natural gas producer delivered mixed quarterly results and soft guidance. We thought the decline was overdone. With West Texas Intermediate crude prices down briefly Tuesday morning due to growth scares and Coterra underperforming the group due to a mischaracterization of its quarter, we pounced on the weakness and called it an opportunity to buy small in this half oil, half natural gas production company. We own 1,550 shares of Coterra. Tuesday’s trade increased CTRA’s weighting to 1.48% from 1.1% in the portfolio. Our Stanley Black & Decker buy, which came a week after the shine came off the company’s post-earnings glow, increased the tool manufacturer’s weighting in the portfolio to 0.82% from 0.33%. With an excess of cash in the portfolio, we’re looking for stocks that are selling at a discount. Stanley Black & Decker is expected to enter 2024 with a lower cost structure, along with a clean inventory position, earning somewhere between $4 to $5 per share in 2024 from the $1 previously expected to earn next year. (On Friday, Wolfe Research downgraded SWK to underperform from peer perform (sell from hold), l argely due to valuation . Our counter is that the company is ahead of plan on its turnaround efforts.) Wednesday Wednesday was our busiest day. The Club executed two trades, trimming our position on Halliburton (HAL) and buying more GE Healthcare Technologies (GEHC), along with changing our price targets for Disney (DIS) and Eli Lilly (LLY). The Club increased our GE Healthcare position to 850 shares, bumping up its weighting in the portfolio to 2.16% from 1.91%. The medical device sector, which GEHC is a part of, has been in a steady decline recently as the aversion to health-care names this year continues. As investors, not traders, we like the company’s fundamentals. GE Healthcare, a few weeks ago , delivered an upside quarter and raised its full-year outlook. We raised our Eli Lilly price target to $600 per share from $460, maintaining our longstanding view that this is the best growth story in mega-cap pharma. Our PT hike came one day after Lilly shares surged to a new all-time high on the promise around the company’s expected obesity drug and great earnings. Despite the market attention on Big Tech, the energy sector has performed the best since mid-July. We used the run as a chance to take profits in Halliburton, which has rallying since May. We still believe in the stock and still own 1,400 shares. Wednesday’s trade only reduced HAL’s weight in the portfolio to 1.97% from 2.24%. We lowered Disney’s price target to $120 per share from $140 but maintained our 1-rating on the lagging entertainment stock. The PT reduction came shortly after Disney reported mixed quarterly results on low expectations. While we did see evidence that CEO Bob Iger’s turnaround plan is working, our previous price target for Disney was too high based on how the stock has been trading this year. Bottom line It was an active week for the portfolio as earnings season has a tendency to bring on the action as we trimmed around the edges on positions that had outsized moves to the upside and bought the dips in companies that had good quarters but were less well received. In total we put roughly $47,000 into the market, lowering our cash position to 11.3% from nearly 13%. Our cash is still at a very healthy figure, which provides some protection in case this recent market struggle extends itself into next week. If and when the S & P 500 Oscillator becomes oversold, expect us to be more aggressive in deploying the war chest we have built up over the past handful of weeks. Until then, we remain patient, gradual buyers into weakness in profitable, quality companies. (Jim Cramer’s Charitable Trust is long SWK, CAT, DD, GEHC, CTRA, DIS, LLY, HAL. See here for a full list of the stocks. Club Director of Portfolio Analysis Jeff Marks contributed to this report.) 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.
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During another busy week of earnings and stock market swings, we picked our spots and made six trades, including calling up a Bullpen name. We also changed two Club price targets. Here’s a day-by-day look.
Last week, Parker Hannifin launched what they’re calling the industry’s first certified Mobile Electrification Technology Center to train mobile equipment technicians make the transition from conventional diesel engines to modern electric motors.
The electrification of mobile equipment is opening new doors for construction and engineering companies working in indoor, environmentally sensitive, or noise-regulated urban environments – but it also poses a new set of challenges that, while they mirror some of the challenges internal combustion faced a century ago, aren’t yet fully solved. These go beyond just getting energy to the equipment assets’ batteries, and include the integration of hydraulic implements, electronic controls, and the myriad of upfit accessories that have been developed over the last five decades to operate on 12V power.
At the same time, manufacturers and dealers have to ensure the safety of their technicians, which includes providing comprehensive training on the intricacies of high-voltage electric vehicle repair and maintenance – and that’s where Parker’s new mobile equipment training program comes in, helping to accelerate the shift to EVs.
“We are excited to partner with these outstanding distributors at a higher level. Their commitment to designing innovative mobile electrification systems aligns perfectly with our vision to empower machine manufacturers in reducing their environmental footprint while enhancing operational efficiency,” explains Mark Schoessler, VP of sales for Parker’s Motion Systems Group. “Their expertise in designing mobile electrification systems and their capability to deliver integrated solutions will help to maximize the impact of Parker’s expanding METC network.”
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The manufacturing equipment experts at Nott Company were among the first to go through the Parker Hannifin training program, certifying their technicians on Parker’s electric motors, drives, coolers, controllers and control systems.
“We are proud to be recognized for our unwavering dedication to advancing mobile electrification technologies and delivering cutting-edge solutions,” says Nott CEO, Markus Rauchhaus. “This milestone would not have been possible without our incredible partners, customers and the team at Nott Company.”
In addition to Nott, two other North American distributors (Depatie Fluid Power in Portage, Michigan, and Hydradyne in Fort Worth, Texas) have completed the Parker certification.
Electrek’s Take
T7X all-electric track loader at CES 2022; via Doosan Bobcat.
With the rise of electric equipment assets like Bobcat’s T7X compact track loader and E10e electric excavator that eliminate traditional hydraulics and rely on high-voltage battery systems, specialized electrical systems training is becoming increasingly important. Seasoned, steady hands with decades of diesel and hydraulic systems experience are obsolete, and they’ll need to learn new skills to stay relevant.
Certification programs like Parker’s are working to bridge that skills gap, equipping technicians with the skills to maximize performance while mitigating risks associated with high-voltage systems. Here’s hoping more of these start popping up sooner than later.
Based on a Peterbilt 579 commercial semi truck, the ReVolt EREV hybrid electric semi truck promises 40% better fuel economy and more than twice the torque of a conventional, diesel-powered semi. The concept has promise – and now, it has customers.
Austin, Texas-based ReVolt Motors scored its first win with specialist carrier Page Trucking, who’s rolling the dice on five of the Peterbilt 579-based hybrid big rigs — with another order for 15 more of the modified Petes waiting in the wings if the initial five work out.
The deal will see ReVolt’s “dual-power system” put to the test in real-world conditions, pairing its e-axles’ battery-electric torque with up to 1,200 miles of diesel-extended range.
ReVolt Motors team
ReVolt Motors team; via ReVolt.
The ReVolt team starts off with a Peterbilt, then removes the transmission and drive axle, replacing them with a large genhead and batteries. As the big Pete’s diesel engine runs (that’s right, kids – the engine stays in place), it creates electrical energy that’s stored in the trucks’ batteries. Those electrons then flow to the truck’s 670 hp e-axles, putting down a massive, 3500 lb-ft of Earth-moving torque to the ground at 0 rpm.
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The result is an electrically-driven semi truck that works like a big BMW i3 or other EREV, and packs enough battery capacity to operate as a ZEV (sorry, ZET) in ports and urban clean zones. And, more importantly, allows over-the-road drivers to hotel for up to 34 hours without idling the engine or requiring a grid connection.
That ability to “hotel” in the cab is incredibly important, especially as the national shortage of semi truck parking continues to worsen and the number of goods shipped across America’s roads continues to increase.
And, because the ReVolt trucks can hotel without the noise and emissions of diesel or the loss of range of pure electric, they can immediately “plug in” to existing long-haul routes without the need to wait for a commercial truck charging infrastructure to materialize.
“Drivers should not have to choose between losing their longtime routes because of changing regulatory environments or losing the truck in which they have already made significant investments,” explains Gus Gardner, ReVolt founder and CEO. “American truckers want their trucks to reflect their identity, and our retrofit technology allows them to continue driving the trucks they love while still making a living.”
If all of that sounds familiar, it’s probably because you’ve heard of Hyliion.
In addition to being located in the same town and employing the same idea in the same Peterbilt 579 tractor, ReVolt even employs some of the same key players as Hyliion: both the company’s CTO, Chandra Patil, and its Director of Engineering, Blake Witchie, previously worked at Hyliion’s truck works.
Still, Hyliion made their choice when they shut down their truck business. ReVolt seems to have picked up the ball – and their first customer is eager to run with it.
“Our industry is undergoing a major transition, and fleet owners need practical solutions that make financial sense while reducing our environmental impact,” said Dan Titus, CEO of Page Trucking. “ReVolt’s hybrid drivetrain lowers our fuel costs, providing our drivers with a powerful and efficient truck, all without the need for expensive charging infrastructure or worrying about state compliance mandates. The reduced emissions also enable our customers to reduce their Scope 2 emissions.”
Page Trucking has a fleet of approximately 500 trucks in service, serving the agriculture, hazardous materials, and bulk commodities industries throughout Texas. And, if ReVolt’s EREV semis live up to their promise, expect them to operate a lot more than 20 of ’em.
Fleet electrification expert Tony Nisam took to LinkedIn yesterday to post a deal that he ran across at a Washington State Costco that stacks a $25,500 manufacturer rebate with $3,000 in “regular” Costco Member Savings, $2,750 in “LIMITED-TIME” Manufacturer to Member Incentives, plus an additional $250 for Costco Executive members.
Do a bit of math (add up 25,500 + 3,000 + $2,750 + 250), and you’ll calculate an almost unheard of $31,500 discount on one of the best, most capable commercial vans on the market – ICE or electric. And that’s before you factor in the 0% interest financing (72 mo.) being advertised at Blade Chevrolet, the Mount Vernon, Washington, where VIN 2G58J2TY6S9104313 (the exact van shown, below) is shown as stock number 16757.
If you’re not a Costco member yet and you’re looking for a new truck for your business or even a unique #vanlife ride with zero emissions, modern tech, and a nationwide dealer network, GM makes that $130 Executive membership seem like a no-brainer.
Is a $39,000 price cut enough to get you to take a look at a new Brightdrop? At $45,235 (from a starting price of $84,235), can you afford not to? Head down to the comments and let us know.