We’re exiting our position in Solstice Advanced Materials , selling 100 shares at roughly $53. Following Thursday’s sale, Jim Cramer’s Charitable Trust will no longer own a position in SOLS. We’re moving on from the specialty chemical company, which we received a tiny position in after Honeywell spun it off on Oct. 30. As is often the case with spinoffs, due to turnover in the shareholder base, trading in the new company initially got off to a shaky start. Solstice shares closed their first day of trading at $48.74 and a few weeks later hit a low of $41.43. However, it rebounded toward the end of November and into December. The new year has been excellent, with shares up more than 8% in the first five trading sessions of 2026. The recent gains have pushed the stock’s outperformance versus the S & P 500 since the company’s inception to about 7 percentage points, which we argue is a sign that breakups can, in fact, create value for shareholders. We’re looking forward to part two of the Honeywell split later this year, when it separates aerospace from automation. As we detailed in our pre-spin commentary , Solstice has some intriguing parts. It has a large refrigerants business that serves stationary HVAC, automotive HVAC, and data center cooling end markets. There’s an electronics component that overlaps with the DuPont spinoff Qnity Electronics , which we continue to plan owning in the Trust. Perhaps most interesting is Solstice’s alternative energy services business. Through its Metropolis Works Facility, the company has the only uranium hexafluoride conversion plant in the U.S. Alternative energy services represent less than 15% of the company’s total sales currently but could be a big growth engine in the future due to expansions in nuclear power generation. So why sell? We were only entitled to 100 shares from the spinoff, creating a position that represented about 0.15% of the entire portfolio. It’s too small to matter, and we’re hesitant to increase our position size and buy more shares at this price. We patiently waited for the stock to unlock value, and we’re moving on after some solid outperformance against the broader market in just a few months. Although we are taking the gain on Solstice Thursday, we’re moving the stock into the Bullpen. We want to keep an eye on it, given its exposure to nuclear and its strong balance sheet that allows management to invest in growth opportunities that may have been sidelined when it was part of the larger Honeywell industrial conglomerate. From this sale, we will realize a gain of about 13% on the shares acquired through the Honeywell spinoff. (Jim Cramer’s Charitable Trust is long HON, DD, Q. 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.
We’re exiting a spin-off winner but putting it in the Bullpen to continue to watch
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