Investing Club: We're dipping our toes back into the market with modest Club stock buy

Published Mon, Feb 14 202211:35 AM ESTUpdated Mon, Feb 14 202211:36 AM EST

We will be buying 25 shares of Danaher (DHR) at roughly $270.53. We discussed this trade Monday during the Club's "Morning Meeting" video livestream, which you can watch on-demand here. Following the trade, the Charitable Trust will own 425 shares of Danaher, increasing DHR's weight in the portfolio to about 2.92% to about 2.75%. We are dipping our toes in the market and putting to work some of the cash we raised last week at higher prices. It may be a contrarian view due to concerns about inflation and geopolitical uncertainties, but we are taking a more constructive stance on the market down at these levels, hence the buy. As discussed in our "Morning Meeting," the chart work done on the 18-week cycle in the Dow by market technician Larry Williams, who has been featured on "Mad Money" numerous times over the years, suggests the 30-stock average is due for a rally that could last until late April. Rising geopolitical tensions could be a curveball to this call, explaining why we are still keeping a lot of cash. But if the situation in Europe peacefully resolves itself, then we think Williams' timing could be right. Why pick Danaher? Danaher is a high-quality life science and diagnostics company run by a management team with a long track record of execution and creating value for shareholders. The company is coming off a terrific fourth quarter, while also providing a very strong outlook for 2022 driven by continued momentum in its base business and not just Covid-related tailwinds. ( Read our bottom line on Danaher earnings .) With shares down about 18% from their highs and trading about 25x consensus 2022 earnings, we find Danaher's current stock level to be attractive relative to the company's ability to consistently deliver double-digit percent earnings growth. (Jim Cramer's Charitable Trust is long DHR. 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.

A Wall Street subway station near the New York Stock Exchange (NYSE) in New York, on Monday, Jan. 3, 2022.

Michael Nagle | Bloomberg | Getty Images

We will be buying 25 shares of Danaher (DHR) at roughly $270.53. We discussed this trade Monday during the Club's "Morning Meeting" video livestream, which you can watch on-demand here.

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