We're exiting a troublesome stock and buying more shares of a promising one

Jim Cramer’s Charitable Trust has fully exited Disney, selling the remaining 375 shares at roughly $106 (realizing about a 9% gain on that tranche), and used roughly half the proceeds to add 238 shares of DuPont spinoff Qnity Electronics at about $76, raising its Qnity stake to 1,050 shares and lifting weighting to 2.2% from 1.7%. Qnity has fallen ~20% in November and ~32% from its Nov. 4 high amid an AI-trade giveback and typical post‑spin turnover, but enjoys favorable analyst reception (eight buys, one hold, average PT ≈ $108; Trust target $110) and reported solid fundamentals—Q3 net sales up 11% YoY and management raised full‑year net sales guidance by ~$100m to $4.7bn—prompting the Trust to view the pullback as a buying opportunity tied to AI adoption and node transitions.

Analysis

Jim Cramer’s Charitable Trust has fully exited its Disney position, selling the remaining 375 shares at roughly $106 and realizing about a 9% gain on that tranche after selling the first half earlier; the exit was prompted by "another disappointing quarter" driven chiefly by declines in Disney’s linear networks business. The Trust redeployed roughly half of the proceeds into DuPont spinoff Qnity Electronics, purchasing 238 shares at about $76 and increasing its Qnity holding to 1,050 shares, lifting the weighting to 2.2% from 1.7%.

Qnity’s stock has fallen roughly 20% in November and about 32% from its Nov. 4 high of $100.91, with the Trust citing a giveback in the AI trade and typical post-spinoff investor turnover as primary drivers; initial analyst reception has been positive (eight buys, one hold, average price target ≈ $108) and the Trust’s target is $110.

Fundamentally, Qnity reported solid Q3 results with net sales up 11% year-over-year and management raised full-year net sales guidance by about $100 million to $4.7 billion, citing increased AI adoption and transitions to advanced nodes. The combination of supportive fundamentals and analyst coverage contrasts with near-term sentiment-driven volatility from the AI trade unwind and spin-related churn, implying upside if operational execution continues but near-term trading risk remains elevated.

Key Decisions for Investors

• Consider opportunistically adding to Qnity on continued weakness given Q3 sales growth (+11% YoY) and a raised FY net sales outlook to $4.7bn, but size positions conservatively because post-spinoff turnover and an AI-trade giveback have driven the recent ~32% decline
• Use a staged buying approach and set a target range in line with Street and Trust views (roughly $108-$110) while monitoring near-term analyst coverage and trading stabilization over weeks to months
• Avoid reinitiating or increasing exposure to Disney until management demonstrates stabilization in linear networks revenue or provides clearer guidance recovery, noting the Trust exited after a disappointing quarter
• Implement downside risk controls (position limits, stops or hedges) to protect against further sentiment-driven drawdowns in semiconductors/AI names while tracking Qnity's execution against its raised guidance