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.
The German city of Karlsruhe is setting an example for sustainability in waste management by deploying a fleet of 18 Mercedes-Benz eEconic electric garbage trucks that are helping make the streets cleaner, quieter, and a lot less stinky.
Since the end of September, the city of Karlsruhe has been relying on Mercedes’ fully electric waste collection vehicles throughout, with none of the area-specific restrictions or limited rollout strategies for one or two trucks at a time that typically accompany stories like these. Instead, the city is using the Mercedes eEconics for the same stuff they’d use the diesel versions for: residual waste disposal, paper collection, and bulky waste collection.
Normal garbage duty, in other words. And, in such daily use, they do a great job. The trucks cover an average route distance of around 80 km (about 50 miles) on 112 kWh battery packs (usable capacity is ~97 kWh) which can be reliably completed in single-shift operation without intermediate charging — thanks, in part, to Mercedes’ efficient electric motors and regenerative braking that shines in the trucks’ typical stop-and-go duty cycles.
More than a single shift, in fact. The fleet managers report that after “a good 80 kilometers with around 60 stops on its daily route,” energy consumption was only around 35% of the battery capacity, meaning the charge level dropped from 100% to 65% and 64% respectively.
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At the same time, CO₂ emissions are significantly reduced: depending on the area of application, each eEconic can save between 150 and 170 tons of CO₂ per year. This results in a total potential annual saving of around 1,200 tons of CO₂ emissions.
The purchase of the electric vehicles was funded by the Federal Ministry of Transport (BMV) as part of the guideline on the promotion of light and heavy commercial vehicles with alternative, climate-friendly drives and the associated refueling and charging infrastructure (KsNI). The funding guideline was coordinated by NOW GmbH, and applications were approved by the Federal Office for Logistics and Mobility.
Electrek’s Take
Look, you know me. There is absolutely ZERO chance that I’ll be able to remain objective about anything that’s putting down more than four thousand lb-ft of torque. Make that thing quieter, cleaner, and generally better for me and my community, and there’s even less of a chance of me saying anything critical about it.
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Electreon just took a big step toward expanding wireless EV charging. The Israel-based company signed a memorandum of understanding (MoU) to acquire the assets of InductEV, a Pennsylvania-based firm known for its ultra-fast, high-power static wireless charging systems used by heavy-duty electric transit and freight fleets.
If the deal closes after due diligence and regulatory approvals, the combined company would bring together Electreon’s dynamic wireless charging tech – the kind that can charge vehicles while they drive – with InductEV’s high-power stationary systems. That would create one of the most complete wireless charging portfolios on the market, covering everything from passenger EVs to vans, buses, heavy-duty trucks, and even autonomous vehicles.
Electreon and InductEV together hold around 400 granted and pending patents, and have a lot of field experience across their respective projects. Electreon says that pairing its manufacturing capabilities and global footprint with InductEV’s ultra-fast tech will help streamline and speed up fleet electrification.
Both companies already work with major vehicle OEMs, which Electreon asserts will make integrating wireless charging into future vehicle platforms easier.
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Electreon CEO Oren Ezer said the deal would combine the two companies into “a truly global powerhouse for wireless EV charging.” He added that “the decision by InductEV’s shareholders to invest in Electreon is a tremendous vote of confidence in our shared vision.”
InductEV CEO John F. Rizzo said, “Together, we’re combining world-class innovation with real-world experience to deliver even greater value to our North American and European customers and accelerate the shift to wireless power for sustainable commercial transportation.”
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The Dolphin Surf is already one of Europe’s cheapest EVs, yet BYD may have an even more affordable electric car up its sleeve.
Is BYD launching the Racco mini EV in Europe?
BYD revealed the Racco at last month’s Japan Auto Show, its first EV designed exclusively for overseas markets.
The mini EV, or “kei car,” is launching in Japan, where over 1.55 million of them were sold last year, accounting for about a third of new vehicles sold.
Although Japan has been a brutal market for foreign brands to crack, BYD believes it may have an edge. The Racco measures 3,395 mm in length, 1,475 mm in width, and 1,800 mm in height, or about 600 mm longer than the Dolphin Surf.
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That’s about the size of the Nissan Sakura EV, Japan’s best-selling electric car. Like the Sakura and most kei cars, the Racco has a boxy, upright stance. It has four doors, with the back two sliding open.
BYD Racco EV (Source: BYD)
Powered by a 20 kWh battery pack, the mini EV is expected to have a driving range of around 180 km (112 miles).
BYD is using its Blade lithium iron phosphate (LFP) battery packs to keep costs down. Although prices have yet to be revealed, the Racco is expected to start at around 2.5 million yen ($18,000) in Japan, putting it on par with the Nissan Sakura.
The BYD Racco EV debuts at the Japan Mobility Show (Source: BYD)
If it launched in Europe, the Racco could go on sale for under £15,000 ($20,000), putting it on par with the Dacia Spring (£14,995) and Leapmotor T03 (£15,995). The BYD Dolphin Surf currently starts at £18,650 ($24,300).
Although it will arrive in Japan first, BYD may launch its smallest, cheapest EV in Europe after all. BYD’s vice president Stella Li suggested to Autocar that the Racco could play a key role globally as an affordable, entry-level EV.
The BYD Dolphin Surf EV (Source: BYD)
“In Japan, we are already launching a kei car; we will be very interested to follow the EU regulation,” Li said, adding, “If there’s some space, we can bring that car here.”
The regulation Li is referring to is the new “E-car” segment that the European Commission president, Ursula Von der Leyen, called for in September.
Von der Leyen said that Europe “should have its own E-car,” where “E” stands for efficient, economical, and European, and added “we cannot let China and others conquer this market.”
The Racco could sit underneath the Dolphin Surf in BYD’s growing European lineup. However, the company is focusing on expanding hybrid options. Li said launching Racco was “not a topic” the company is immediately focused on.
The Seal U, Europe’s best-selling plug-in hybrid through September, will be the first vehicle built at BYD’s new factory in Turkey, as it seeks to gain an edge through local production.
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