We're paring this stock to refill our cash position after the market's latest rally
We are selling 50 shares of Emerson Electric (EMR) at roughly $98.31. Following the trade, Jim Cramer's Charitable Trust will own 750 shares of EMR, decreasing its weighting in the portfolio to 2.57% from 2.73%. Following a big multiday rally in the stock market that brought the S & P Oscillator out of its oversold condition, we are making a small sale Wednesday to refill our cash position which we aggressively deployed over the past two weeks. We are making a small sale in Emerson Electric and downgrading our rating to 2. With the stock trading at around $98 per share, Emerson has finally recovered all of its losses dating back to the Jan. 17 hostile takeover announcement of National Instruments (NATI), which turned friendly in April when the two companies entered an agreement under which Emerson will acquire NI for $60 per share in cash. The deal is expected to close in the first half of Emerson's fiscal 2024, subject to regulatory approval. A weak fiscal first quarter report in February and general uneasiness around the premium paid for National Instruments kept Emerson in the low $80s for much of the spring. But we capitalized on this weakness and built up our position all the way down, betting that all the moving parts from its portfolio transformation would come together. Our patience has been rewarded since June as Emerson righted the ship from its disappointing first quarter and delivered two straight beats and raises, including a 19-cent beat in the quarter reported at the start of August . An attractive valuation and the improving fundamentals prompted a big upgrade to overweight from hold at JPMorgan last Friday, giving us optimism that the Emerson Electric story still has legs to it. However, we think it's prudent to take off a little EMR now that the stock has finally got back to this key $98 level. (Jim Cramer's Charitable Trust is long EMR. 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.

People walk along Wall Street outside of the New York Stock Exchange (NYSE) on May 03, 2023. Spencer Platt | Getty Images