Monday, March 4, 2024
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How Danaher’s new acquisition will boost earnings

Every weekday the CNBC Investing Club with Jim Cramer holds a Morning Meeting livestream at 10:20 a.m. ET. Here’s a recap of key moments. 1. U.S. stocks edged slightly lower in midmorning trading Friday, with the S & P 500 down 0.08%. But the index is still on track for its third-straight week of gains. Bonds yields were little changed today, with that of the 10-year Treasury hovering around 4.4%. And oil prices jumped more than 2% Friday after West Texas Intermediate crude has lost more than 20% since its September high — a pullback that has weighed on Club name Coterra Energy (CTRA), creating a potential buying opportunity. 2. Club holding Danaher ‘s (DHR) $5.7 billion acquisition of biotechnology firm Abcam (ABCM) is now expected to close on Dec. 6. The transaction is expected to be accretive by about 20 cents per share in the first full year after the deal closes. The deal will give Danaher a presence in the highly attractive protein consumable market, which is used in nearly all biologic research, including drug development. Long term, the business is expected to grow in the high single digits with gross margins greater than 60%. 3. Club holding Eli Lilly confirmed Friday it will build a $2.5 billion manufacturing plant in Germany to expand drug production, including its treatments for diabetes, obesity and Alzheimer’s disease. Lilly has now announced investments of more than $11 billion in its global manufacturing footprint over the past three years to support the supply of its medicines. Shares of Eli Lilly are up more than 60% year-to-date largely on the back of the pharmaceutical giant’s recently weight-loss drug , which was recently approved in the U.S. (Jim Cramer’s Charitable Trust is long CTRA, DHR, LLY. 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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