Investing Club: We're adding to a health stock in Monday's market slide — here's what else we're watching

Published Mon, Mar 7 202211:45 AM ESTUpdated Mon, Mar 7 20222:57 PM EST

We're making a small buy for the portfolio Monday, adding 150 shares of Bausch Health Cos . (BHC) at roughly $21.86. Following the trade, we'll own 4,300 shares of BHC, increasing the stock's portfolio weighting slightly to 2.52% from 2.44%. We're taking action on Bausch Health Cos. as the company has very minimal revenue exposure to Russia, roughly 1.9% according to FactSet, and limited economic sensitivity. So why does the stock keep falling? We think it's mostly related to the company's ability to break up into three parts. While we cannot deny how uncertain the market conditions are to launch not one but two initial public offerings, we ultimately think management will get it done, and at the valuations necessary to achieve their leverage targets and maximize shareholder value. This special situation may have taken longer than expected to play out, but we still believe our patience will be rewarded. Despite being away and off from "Squawk on The Street" and "Mad Money," Jim Cramer streamed into our "Morning Meeting" video Monday morning to discuss how he's reading in the stock market sell-off and how he wants to position his own Charitable Trust, which serves as the portfolio for the Investing Club. With another rough day in the markets unfolding, the conclusion we had is that we want to put a small amount of money to work in quality companies and special situations that have little exposure to the tragic events that are happening in Ukraine. We certainly have the wherewithal to do some buying. You always wish you had more during tough times like these, but we still have plenty of cash on the sidelines with a position north of 7%. At the same time, we have to respect price and pick our spots because there are so many falling knives in the market, and it's even happening to some of the best companies in the world. For example, look at Alphabet (GOOGL) on Monday. We added to our position late Friday because the Google-parent has minimal exposure to the geopolitical in Europe. The stock had fully washed out all its gains from that great quarter it had last month. But even that wasn't good enough as GOOGL shares were down a quick 3% from our purchase. Advanced Micro Devices (AMD) was one stock we talked about in Monday's video. The semiconductor stock is coming off a fantastic beat and raise quarter , and the recently announced $8 billion buyback program shows that it's become a strong cash flow generation. Despite our long-term interest in AMD, we understand that its price could still go lower in this rough tape. We think closer to $100, which is about where the stock bottomed on Jan 28, might be the more appropriate price to act. (Jim Cramer's Charitable Trust is long BHC, GOOGL and AMD. See here for a full list of the stocks.) Correction: This story has been updated to reflect that 150 shares of BHC were purchased in this trade. 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.

Joseph Papa, CEO, Bausch Health

Scott Mlyn | CNBC