We’re exiting our position in a health-care stock to raise some cash
Shortly after the opening bell, we will be exiting our position in GE Healthcare , selling 550 shares at roughly $65. Following Friday’s trade, Jim Cramer’s Charitable Trust will no longer own a position in GEHC. We’re cutting loose our small position in GE Healthcare and raising some cash following two negative developments over the past 48 hours. First is the impact of tariffs. Per GE Healthcare’s annual report filed in February, it has 15 manufacturing facilities located in the U.S. and 28 locations overseas, including in China, India, Israel, Mexico, Brazil, Europe, South Korea, and Japan. Usually, a diversified supply chain is the envy of companies because it allows them to be flexible in disruptive times. But not in this era of high reciprocal tariffs. GE Healthcare’s international presence works against them. Second, the company’s China exposure is problematic. The country’s response to the tariffs is too much to bear for this medical equipment company. In response to the increased tariffs, China said Friday it will impose 34% retaliatory tariffs on all goods imported from the U.S. In addition, China announced an anti-dumping probe in medical CT X-ray tubes from the U.S. and India. This crackdown on medical equipment will likely be a setback to the green shoots GE Healthcare saw earlier this year. These two new negative developments are not worth defending for the smallest position in the portfolio. Plus, this extra cash will increase the defensiveness of the portfolio in this uncertain moment Based on premarket prices, we will realize a loss of about 12% on our last remaining shares. (Jim Cramer’s Charitable Trust is long GEHC. 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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