Aniket PujariShortly after Thursday’s opening bell, we’re going to be buying 50 more shares of Capital One Financial at roughly $170. Following the trade, Jim Cramer’s Charitable Trust will own 350 shares of COF, increasing its weighting to 1.75% from 1.5%. We’re putting some money to work Thursday into a market that has moved deeper into oversold territory, according to the S & P Oscillator . After Wednesday’s mixed session, the Oscillator moved to minus 6%, representing the most oversold the stock market has been since the recent selloff began. An Oscillator reading of minus 4% or below indicates oversold; on the positive side, 4% and above signals overbought. Back-to-back days of cooler-than-expected inflation reports also have us more positive about the economy and the market at these levels. On Wednesday, the February consumer price index increased 2.8% year over year, below expectations of 2.9%, and January’s reading of 3%. On Thursday, the February producer price index was unchanged month over month and increased 3.2% year over year — both were lower than forecast. We’re looking to make a few buys over the course of the day — starting with another add to our newest position, Capital One Financial. We’ve been gradually buying shares of this financial services company since we initiated it last Thursday. Shares are down nearly 20% from their highs, creating an attractive opportunity to buy shares of a company that is expected to complete a game-changing acquisition in a few months. COF 1Y mountain Capital One Financial 1 year Through its acquisition of Discover Financial Services , Capital One will own a payment network, which will scale up and become a vertically integrated global payments platform. The deal is also expected to create $2.7 billion of synergies, driven by reducing Discover’s operating expenses through common business functions and moving Capital One’s purchase volumes to the Discover Network, which would reduce its reliance on MasterCard and Visa, which are quite costly. We’ll focus more on our Capital One thesis, and provide updates on the rest of the Investing Club’s 32-stock portfolio during our March Monthly Meeting at noon ET. (Jim Cramer’s Charitable Trust is long COF. 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.
