MY NUMBER 1 RECOMMENDATION TO LOSE WEIGHT: CLICK HERE
Every weekday, the CNBC Investing Club with Jim Cramer hosts “The Morning Briefing” live at 10:20 a.m. ET. Here’s a recap of Tuesday’s key moments. Opportunity to buy Caterpillar Convinced of the decision to buy Johnson & Johnson Why buy before the overhang? 1. Opportunity to buy Caterpillar Shares of Caterpillar ( CAT ) were down 4.2% mid-morning Tuesday after the company reported earnings before the bell. Still, the industrial company’s results were strong overall, considering the increase in revenue and margins across all three segments. Caterpillar also expects sales and earnings next year to grow above 2022 levels. Its strong underlying numbers tell us that the market’s reaction has been missed and represents a buying opportunity for investors. 2. Why We Bought More Johnson & Johnson Shares of Johnson & Johnson ( JNJ ) fell on Tuesday after a US appeals court on Monday rejected the pharmaceutical giant’s bankruptcy strategy for tens of thousands of lawsuits related to the company’s talc products. We bought 50 shares of Johnson & Johnson ( JNJ ) at about $161.81 apiece shortly after the bell to take advantage of the market’s overreaction. While the company lost $16 billion in market capitalization in a single day, it is unlikely that the company will experience an additional $16 billion in losses related to the lawsuit. We continue to like the company’s clean balance sheet and bought the dip to enjoy potential upside in the stock. 3. Why buy before the overhang? An overhang is an uncertain event that keeps investors on the sidelines, preventing the stock from rallying until there is clarity. Shares of Humana ( HUM ) rose nearly 5% on Tuesday after the U.S. Department of Health and Human Services released the final rule for Medicare Advantage (MA) Risk Adjustment Data Validation revisions. Stock growth is an example of how buying ahead of an overhang can go your way, and immediate stock growth can be significant. Because the long-awaited Medicare decision wasn’t as bad as feared, it lifted the cap on HUM’s ability to go higher. But it’s important to understand that sometimes things don’t go your way. In this case it worked. (Jim Cramer’s charitable trust has CAT, HUM, JNJ debt. See here for a full list of stocks.) As a CNBC Investing Club with Jim Cramer subscriber, you will receive a trade alert before Jim closes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charity’s portfolio. If Jim talked about a stock on CNBC, he waits 72 hours after the trade alert is issued before he executes the trade. THE ABOVE INFORMATION IN THE INVESTING CLUB IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY TOGETHER WITH OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR DUTY SHALL EXIST OR BE CREATED BY YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO PARTICULAR RESULT OR PROFIT IS GUARANTEED.
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MY NUMBER 1 RECOMMENDATION TO LOSE WEIGHT: CLICK HERE
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