We are buying 50 shares of Dover at roughly $173.43. Following the trade, Jim Cramer’s Charitable Trust will own 500 shares of DOV, increasing its weighting to 2.63% from about 2.37%. The industrials are having a tough few days, as the Institute for Supply Management’s August survey of purchasing managers released Tuesday renewed concerns about the health of the manufacturing sector. It’s been a rough stretch for AI-related stocks too, with those names falling as the market struggles to figure out if we are at the peak of capital expenditure spending. These two dynamics have made things difficult for Dover’s stock, which is down more than 6% this week and from our last buy on Friday. Even though the market has turned against Dover and its peers, which includes Club stock Eaton , the growth outlook remains strong and we are buying this dip. But we are trying to keep our buys on the smaller side to protect our large cash position because we are in a seasonally weaker period that could last into mid-October. At least that’s what market historian Larry Williams’ research suggested in a recent “Mad Money” segment. Last week, we talked about how Dover is a key ecosystem partner of Nvidia, supplying thermal connectors that play a critical role in liquid cooling AI servers. Liquid cooling is going to be the preferred option for data centers that use the Blackwell platform, replacing traditional air cooling. This is why we expect Dover’s thermal connectors business to have years of growth ahead of it as these next-gen platforms dominant future data centers. Outside of the data center, Dover has several other high-growth businesses that collectively helped push the company’s order growth in the second quarter to 16% year over year. The company is a supplier of biopharmaceutical components, heat exchangers and CO2 refrigeration systems. Lastly, there’s also a portfolio reconfiguration story happening here, with management shedding slower-growth businesses and redeploying cash proceeds into faster-growing and higher-margin opportunities. On its second-quarter earnings call, management highlighted the $2 billion sale of its unit that makes garbage trucks and trash compactors, and the acquisition of two critical components suppliers for industrial gases, cryogenics and clean energy applications. (Jim Cramer’s Charitable Trust is long DOV. 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.
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