Investing Club: We just launched our Bullpen — here are the first 6 stocks sitting in it

Investing Club: We just launched our Bullpen — here are the first 6 stocks sitting in it

A pipe leads to a processing facility at Barrick Gold Corp.’s silver and gold Veladero mine in the San Juan province of Argentina.

Diego Levy | Bloomberg | Getty Images What is the Bullpen?

The Bullpen is a collection of stocks identified by the Investing Club team as having the potential to join the Trust. These are companies we view as high quality and will monitor outside the current portfolio. When would we buy?

We’re analyzing and looking for opportunities to buy these stocks, but there’s no guarantee when, or if, we’ll initiate a purchase. Also, adding a stock to the Bullpen does not necessarily mean we would buy it at the current price. Before initiating a position, we are typically waiting for either certain events to unfold — both company-specific and macro-oriented — or a more attractive entry point. The current makeup of the portfolio may also delay an initiation in order to keep it diversified.

Ultimately, the Bullpen should be treated like a watch list and an outside area to perform homework and due diligence. Stocks in the Bullpen

Barrick Gold (GOLD) is a gold miner. Its purpose in the Bullpen is for “insurance.” Many investors seek out gold stocks as a safe haven in times of uncertainty or during a crisis — like the one happening in Europe right now. Barrick Gold

1 Year Chart

Line chart with 250 data points.

The chart has 1 X axis displaying Time. Range: 2021-03-16 01:00:00 to 2022-03-11 01:00:00.

The chart has 1 Y axis displaying values. Range: 16 to 26.

Created with Highcharts 9.0.1May ’21Jul ’21Sep ’21Nov ’21Jan ’22Mar ’22161820222426cnbc.com

End of interactive chart. Emerson Electric (EMR) is a high-quality industrial with significant exposure to oil and gas markets, as well as the commercial and residential sectors. We also appreciate the willingness of new CEO Lal Karsanbhai to seek value-creating opportunities through the strategic review of the current portfolio. The AspenTech deal is one recent move that we liked. Emerson Electric

1 Year Chart

Line chart with 249 data points.

The chart has 1 X axis displaying Time. Range: 2021-03-19 00:00:00 to 2022-03-14 00:00:00.

The chart has 1 Y axis displaying values. Range: 85 to 110.

Created with Highcharts 9.0.1May ’21Jul ’21Sep ’21Nov ’21Jan ’22Mar ’22859095100105110cnbc.com

End of interactive chart. PepsiCo (PEP) is a classic safety stock in that that can grow and make its numbers no matter the global economic environment. PepsiCo’s main growth engine comes from its Frito Lay snacks division, but beverage also has plenty of pricing power. One key risk we are monitoring is the company’s exposure to Russia. PepsiCo

1 Year Chart Line chart with 250 data points.The chart has 1 X axis displaying Time. Range: 2021-03-16 01:00:00 to 2022-03-11 01:00:00.The chart has 1 Y axis displaying values. Range: 130 to 180.Created with Highcharts 9.0.1May ’21Jul ’21Sep ’21Nov ’21Jan ’22Mar ’22130140150160170180cnbc.comEnd of interactive chart. Johnson & Johnson (JNJ) is a high-quality name with defensive qualities thanks to its different health-care businesses and pristine balance sheet. What makes this stock unique and what we like to call a “special situation” is the upcoming separation of its consumer health business from its pharmaceutical and medical devices business. We think this event will create value for shareholders. Johnson & Johnson 1 Year Chart Line chart with 250 data points.The chart has 1 X axis displaying Time. Range: 2021-03-16 01:00:00 to 2022-03-11 01:00:00.The chart has 1 Y axis displaying values. Range: 150 to 185.Created with Highcharts 9.0.1May ’21Jul ’21Sep ’21Nov ’21Jan ’22Mar ’22150155160165170175180185cnbc.comEnd of interactive chart. Pioneer Natural Resources (PXD) is an oil and gas exploration and production (E&P) company. Like Devon Energy (DVN), Pioneer is focused on discipline and committed to returning a significant amount of cash to shareholders through use of a fixed-plus-variable dividend and share purchases. Pioneer National Resources 1 Year Chart Line chart with 250 data points.The chart has 1 X axis displaying Time. Range: 2021-03-16 01:00:00 to 2022-03-11 01:00:00.The chart has 1 Y axis displaying values. Range: 125 to 250.Created with Highcharts 9.0.1May ’21Jul ’21Sep ’21Nov ’21Jan ’22Mar ’22125150175200225250cnbc.comEnd of interactive chart. Estee Lauder (EL) is a consumer products company with a track record of strong growth and margin expansion. We recently owned this stock, but we exited our position at around $360 per share in December. As a beauty and makeup company, Estee Lauder acts as a “reopening play” because people increase the use of its products when they go out unmasked. Travel is also a big market for the company. Europe (amid the breakout of war) and China (which is still […]

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