Analysis: ETP MRO EOG OXY AGN JNJ MMM TSN SBUX

This content was originally published as an Action Alerts PLUS Alert on July 8, 2015. Stock prices, shares held and portfolio positions may have changed.)

Days like today are why we raise cash for the portfolio. Over the past five trading days, we have been slowly but surely building up a substantial cash position that, at over 11% of total assets, is the largest ratio held in recent memory. While it has been tempting this entire week to buy hand over fist into the energy dip, we have prudently held back.

Running an equity portfolio (or any portfolio, for that matter) is just as much about cash management as single- stock selection. At 0.00%, cash is the only return that is certain, predictable and risk-free. Although it is not, by any way, shape or form, a sexy investment, it is a secure one.

That being said, we would be lying if we told subscribers that days like today don't hurt. It's painful to witness a sea of red across the portfolio, and even more painful to see our energy names in particular spiraling downward in lockstep fashion. We admit that we bought in to several names -- Energy Transfer Partners (ETP) , Marathon Oil (MRO) and EOG Resources (EOG) are at the top of our minds -- too early, and while we remain confident in their long-term value, we would clearly have hoped for a lower cost basis.

Going forward, we have set specific levels -- which we laid out in a note Monday morning -- at which we feel comfortable pulling the trigger and purchasing more shares: EOG under $80, Occidental Petroleum (OXY) under $71, ETP under $48 and MRO below $22. EOG and OXY are certainly our most favored names, with ETP and MRO a distant third and fourth (in fact, we do not plan to purchase more shares of ETP or MRO in the near future -- our attention lies firmly with EOG and OXY).

A few other names at the top of our list include Allergan (AGN) , Johnson & Johnson (JNJ) , 3M (MMM) and Tyson Foods (TSN) . If Starbucks (SBUX) falls below $50, we would also consider swooping back into the name.

Depending on what news emerges overnight, we view tomorrow as an opportunity to pick at our favorite names. We still value cash -- as you know, we committed very little of it today (JNJ) -- and are awaiting lower prices to take appropriate action.

Regards, Jim Cramer, Portfolio Manager & Jack Mohr, Director of Research - Action Alerts PLUS DISCLOSURE: At the time of publication, Action Alerts PLUS was long OXY, EOG, MRO, ETP, AGN, JNJ, MMM, TSN and SBUX.