We are exiting our position in Coterra Energy , selling the remaining 2,600 shares at roughly $24. We owned Coterra as a hedge against a spike in energy prices that often is the result of geopolitical turmoil. Higher energy prices are a headwind to companies across sectors because they represent a large — sometimes the largest — input cost. They also mean higher costs for consumers. The only winners are the companies that sell the commodity. A big selling point for Coterra over its peers was its ability to shift resources between crude oil and natural gas depending on the financial profile of the each at any given time. However, that has not worked out too well this year as the company had too much natural gas when the market wanted oil, and then too much oil when the market wanted natural gas. Moreover, there is no denying that the price dynamics of energy commodities has been lackluster. As Jim Cramer commented after Coterra’s earnings earlier this month : “You can’t outrun your commodity, not if both commodities you’re in are bad.” The situation could get even worse should President Donald Trump use oil sales and a removal of sanctions as an incentive for Russia to end its war in Ukraine. For these reasons, we’re moving on from Coterra and will realize a loss of about 8% on the trade. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) 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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