The market is undervaluing this stock — so we’re adding to our position

We are buying 200 shares of GE Healthcare Technologies (GEHC) at roughly $81.83. Following the trade, Jim Cramer’s Charitable Trust will own 525 shares of GEHC, increasing its weighting in the portfolio to about 1.47% from 0.91%. We are making a small buy this afternoon in GE Healthcare Technologies as we continue to think the market is underappreciating the company’s broader Alzheimer’s opportunity. Earlier Tuesday we saw news that Medicare has proposed expanding its coverage of PET scans that are used to help diagnose this terrible disease. This is one more data point that suggests hospitals around the country will step up their investment in diagnostic infrastructure in order to support the Alzheimer’s treatment launches. As this happens, GE Healthcare will be one of the big winners because it is one of the few companies that offers a full suite of products and solutions to support patients with Alzheimer’s. This includes PET scanners, which are used to confirm diagnosis, and MRI systems to monitor therapy. GEHC also has a diagnostic agent called Vizamyl, which is a tracer for amyloid-beta plaque detection and quantification. Even though we are violating our cost basis with this trade, we want to make this position because we believe GEHC will tell an upbeat story around this opportunity when it reports earnings next week. (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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