We are selling 95 shares of GE Healthcare at approximately $74. Following Wednesday's transaction, Jim Cramer's Charitable Trust will own 1,150 shares of GEHC, reducing its weighting from 2.97% to 2.75%. The small adjustment we're making at GE Healthcare with stocks slightly rising on an otherwise difficult treadmill doesn't change our belief in this medical equipment maker as a long-term play. The launch of Alzheimer's treatments and the integration of artificial intelligence into its products will lead to stronger prices and higher margins. However, China has us worried right now. Outside of China, the story is solid. In its presentation at the JPMorgan Healthcare Conference earlier this month, management offered an optimistic view of the hospital capital spending environment in 2024 versus 2023. If hospitals have more means to invest in medical equipment, some of that will go to GE Healthcare. However, Philips, a GE Healthcare competitor, reported earnings earlier this week and said its order book fell 3% in the fourth quarter, mainly due to weakness in (you guessed it) China. To be fair, GE Healthcare's outperformance in China, where orders increased year over year, was one of the reasons the stock rose after its third-quarter earnings report in October. GEHC 1 year mountain GE Healthcare 1 year Fast forward to the JPMorgan conference, GEHC said it has not yet seen a significant deterioration in its operations in China. The company will present its quarterly report next week. In addition, it has been surpassing its competition in terms of orders for several quarters. Philips orders have declined for six consecutive quarters, but GE Healthcare has yet to notice that weakness. So why cut GEHC now? Looking ahead to Tuesday's edition, we want to open up some space in our position. We want to be prepared in case the stock is affected by cautious guidance due to China, or because management wants to start the year with a conservative view that they can beat throughout the year. Reflecting our small sale, we are moving our rating to 2 on GEHC. We have fought this name and expanded our position several times after the stock fell below $70. With Wednesday's sale, we will take a small loss of about 7% on GEHC shares purchased last May. (Jim Cramer's Charitable Trust is long GEHC. See here for a full list of 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 fund'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 INVESTMENT 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 THE RECEIPT OF ANY INFORMATION PROVIDED IN RELATION TO THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR BENEFITS ARE GUARANTEED.
