We’re buying 50 shares of Johnson & Johnson (JNJ) at roughly $165.39 each. Following Monday’s trade, Jim Cramer’s Charitable Trust will own 425 shares of JNJ, increasing its weighting in the portfolio to 2.28% from 2.02%. Shares of the pharma, med tech, and consumer product company saw a two-session loss of 3% on Thursday and Friday of last week as investors weighed its potential exposure to Zantac litigation. While mindful of this risk, we continue to believe Johnson & Johnson’s exposure will be minimal, if anything. As we explained last week , J & J never sold the over-the-counter heartburn medicine in the United States and has not been named in any U.S. lawsuits. So, what we see here is a likely situation where J & J has lost more in market capitalization than what its shared liability would be in a worst-case scenario, making the recent pullback a buying opportunity in our view. We said last Thursday that we would be buyers of J & J if we were not restricted from trading the stock. As a reminder, we cannot buy or sell any stock Jim mentions on television for three days. With our trading restrictions cleared Monday, we are making that trade. (Jim Cramer’s Charitable Trust is long JNJ. 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 using a pullback in one of our drug stocks to buy more shares
Traders work on the floor of the New York Stock Exchange in New York City.
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