We are buying 90 shares of Cardinal Health at approximately $217. Following the transaction, Jim Cramer's Charitable Trust will own 350 Cardinal shares, increasing its weight to approximately 2% from 1.46%. We may have started a new position in Cardinal Health too early this week, but the silver lining is that the stock's decline is not tied to fundamentals, creating more upside for our $260 price target. Despite its resistance to rising oil prices and geopolitical turmoil, the healthcare sector is the third-worst performing group this week, and Cardinal Health has been the victim of a market rotation from year-to-date top performers to enterprise software group defeated. The decline in healthcare has been counterintuitive to the idea that conflict in the Middle East will slow the economy and push investors into more defensive names, but that's why we never buy an entire position at once. Even though we have a lot of cash, we always leave room in our new names to average down. Also, note that this new Cardinal position replaced Danaher, which has fallen about 3% since our departure last week. Beyond the market churn, the drug distribution group, which includes McKesson and Cencora, is under pressure after the former announced the retirement of its former chief financial officer, Britt Vitalone. The news took the market by surprise, which explains why McKesson shares have fallen about 5%, making them one of the worst performers of the session. But this departure is not one that raises a red flag. It is part of a planned transition, and Vitalone will remain with McKesson as a strategic advisor to carry out the spin-off of its Medical Surgical Solutions business. In short, we are dipping into our large cash position to buy more shares of a company that has been unfairly punished this week. (Jim Cramer's Charitable Trust is long CAH. 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, 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.
