Cramer's Investing Club: We're adding to our position in this drugmaker on weakness

Published Mon, Jan 24 20223:11 PM ESTUpdated Mon, Jan 24 20223:18 PM EST

We are buying 25 shares of Eli Lilly (LLY) at roughly $235.01. Following the trade, the Charitable Trust will own 500 shares of Eli Lilly. This buy will increase LLY's weight in the portfolio from about 2.92% to 3.07%. We are wrapping up this volatile trading day by making one additional small buy into this violate market. As a reminder, we did the bulk of our buying earlier in the session after we started a position in Devon Energy (DVN) — an oil company that pays a huge dividend thanks to management's unique cash-return business model — and added to an existing position in Morgan Stanley (MS). We recently picked up some shares of LLY last week, after it fell below the price it traded at before the company's upbeat December Investor Day meeting. As a brief recap of the event, management raised its full-year 2021 revenue and earnings per share guidance and provided a 2022 outlook that was much stronger than expected. Furthermore, management showcased a pipeline that we believe is the most valuable in the entire industry, headlined by tirzepatide for Type 2 diabetes and obesity as well as donanemab for Alzheimer's. Both drugs are expected to receive Food and Drug Administration approval later this year. With shares down about 5% our last purchase and below its Investor Day meeting levels, we continue to believe buying shares here means we are getting all of that good news for free. (Jim Cramer's Charitable Trust is long LLY, DVN and MS. 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.

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