We will exit our position in Solstice Advanced Materials and sell 100 shares for approximately $53. After Thursday’s sale, Jim Cramer’s Charitable Trust will no longer own a position in SOLS. The company will separate itself from the specialty chemicals company that took a small position after Honeywell spun off on Oct. 30. As is often the case with spin-offs, the new company’s trading got off to a shaky start due to a shuffling of the shareholder base. Solstice stock closed its first day of trading at $48.74 and fell to a low of $41.43 a few weeks later. However, it recovered from late November to December. The new year has been great, with the stock up more than 8% in the first five trading sessions of 2026. The recent gains have pushed the stock’s outperformance against the S&P 500 Index since its inception to about 7 percentage points. We argue that this is an indication that stock splits can actually create value for shareholders. We look forward to the second part of the Honeywell split that will separate aerospace and automation later this year. As detailed in the pre-spin commentary, Solstice has some interesting parts. The company has a large refrigerant business serving the stationary HVAC, automotive HVAC, and data center cooling end markets. We have electronic components that overlap with Qnity Electronics, a DuPont spin-off, which we will continue to own in the trust. Perhaps most interesting is Solstice’s alternative energy services business. Through its Metropolis facility, the company has the only uranium hexafluoride conversion plant in the United States. Alternative energy services currently account for less than 15% of the company’s total sales, but with the expansion of nuclear power generation, it could become a major growth driver in the future. So why does it sell? The Company was entitled to acquire only 100 shares in the spin-off, creating a position representing approximately 0.15% of the total portfolio. I would be hesitant to increase my position size and buy more shares at this price as it is too small to matter. We waited patiently for the stock to unlock value. Then, after achieving solid outperformance against the overall market in just a few months, it’s time to take the next step. I’m taking a profit on Thursday’s solstice, but I’m moving stocks into the bullpen. We like to keep an eye on the company because of its exposure to nuclear power and its strong balance sheet, which allows management to invest in growth opportunities that may have been sidelined when it was part of the larger Honeywell industrial conglomerate. The sale represents a gain of approximately 13% on the shares acquired through the Honeywell spinoff. (The Jim Cramer Charitable Trust is long HON, DD, Q. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
