Jim and Jeff discuss why they’re adding to this health care stock. Become a CNBC Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks as they talk candidly about the market’s biggest headlines. Signup here: cnbc.com/morningtake
Squawk on the Street
Cramer's Morning Take: Abbott Labs 5/29/24
Jim and Jeff discuss why they’re adding to this health care stock. Become a CNBC Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks as they talk candidly about the market’s biggest headlines. Signup here: cnbc.com/morningtake
CNBC Investing Club Disclaimer
- Duration:
- 4m
- Broadcast on:
- 29 May 2024
- Audio Format:
- mp3
What's on the horizon for financial markets? At PJIM, it's a question that over 1,400 investment professionals relentlessly research in pursuit of your long-term goals. Specialised across asset classes, but united in collaboration, our teams provide global and local expertise. Our investments shape tomorrow, today. Pursue your tomorrow with PJIM, a leading global asset manager. Jim Kramer here to share with you a sample of my take on the market from today's CBC Investing Club Morning Meeting. This morning, when we got a 9-to-1 down, the late Mark Hanes, and I don't know how many of you were able to watch Mark, but Mark, particularly at the beginning of when I moved over, did a huge amount of charting, a huge amount of work on individual stocks. At that point, he was allowed to own individual stocks and really did encourage him. And he always said to me, "Jim, if there's one thing that is certain, at 9-to-1, you'll buy." And he always put it the same way, "You find something." And I think that we have been true to Mark's words this morning. Yeah, I think we've been true to his words for many, many years. But, yeah, this morning, we added to Abbott Labs, which is obviously, look, healthcare very out of favour. Abbott Labs out of favour, companies specific issues. They do a tangential tie-up with J&J. J&J has a massive number of lawsuits. This is a very small number. And I think that all drug firms at one time or another are faced with what Abbott is, but where J&J is very special. Right, that's J&J's talc. Abbott is baby formula, which is a medical need. It's a prescription, but this is a failure to warn situation, resulting back to a loss by Wreck-It-Ben-Keezer. Which is not as good a company, I'm sure. But, no, not at all. But Abbott, I mean, one of the fastest growing companies in all of MedTech, 10.8% growth, organically, sales in the first quarter. Not a lot of non-AI plays that are posting double-digit growth like that for a company of this size. Exactly, right. $175 billion market cap, great balance sheet, really high quality. It's out of favour, we have the overhang, but those are more temporary issues. So, we're just slowly building that position. Yeah, look, there's no hurry. We do think that they could lose the first case. It would not be unusual to lose one or two, and then just, you know, bring the first one. But once you get some wins and the ball starts rolling, you might have a lot of... Right, the plaintiffs wanted to be in Missouri, because Missouri is the worst state in the Union for defense. And then they hoped to bring out more plaintiffs so they could find them, but there aren't a lot of, sadly, it's like, anyone who dies and you know, because they were a chairman of Baby Hard in front, Gail and Columbia, that any child dies, just terrible. But there are situations where this milk has to, the Abbott milk has to be used, and there are going to be situations where something goes wrong. And that's just a terrible thing, but it does happen. Yeah, absolutely. And that's one of the reasons why we feel... But it's not a... That it's an aberration about those who die versus J&J. There's plenty of evidence that maybe they do. Join the CNBC Investing Club with Jim Kramer. You catch my member exclusive warning meetings every day at 10/20am. Visit cmbc.com/morningtake to become a member today. That's one word, morning take. All opinions expressed by Jim Kramer on this podcast and in connection with the CNBC Investing Club are solely Kramer's opinions and do not reflect the opinions of CNBC, NBC, Universal or their parent company or affiliates, and may have been previously disseminated by Kramer on television, radio, internet or another medium. No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Kramer. The opinions offered in connection with this podcast and the CNBC Investing Club are not an attempt to induce any particular trading behavior, investment or strategy. You should be aware of the risk of loss in following any strategy or investment discussed in the content from Kramer. To view the full CNBC Investing Club disclaimer, please visit cmbc.com/investingclubdisclaimer. This podcast is supported by FedEx. Dear small and medium businesses, no one wants happy customers more than you do. That's why FedEx offers you picture proof of delivery, package lists and paper lists returns, as well as weekend home delivery to 98% of the US on Saturday and 50% on Sunday. See the FedEx Service Guide for delivery information. FedEx Ground Service is also faster to more locations than UPS Ground. See what FedEx can do for your business. Absolutely, positively FedEx. (upbeat music)