For his second "Executive Decision" segment of Mad Money Thursday night, Jim Cramer spoke with Jesse Singh, president and CEO of Azek Company Inc. (AZEK) , the building materials company. AZEK's shares rose 4.5% Thursday after reporting its first earnings as a public company.
Singh said Azek saw strong demand across the board, even though many contractors were not allowed to work in some parts of the country. The pandemic has made the home more important than ever, he said, and addressing the exterior with high-quality materials that last is a big bonus for the long-term.
Azek has been building its brands for over 20 years, Singh said, and the company's unique technologies have translated into many loyal customers. Despite all of their successes, 80% of the decking market is still wood, which remains its primary competitor.
Let's check out two charts of this new issue.
In this daily Japanese candlestick chart of AZEK, below, we can see that prices have moved higher in its limited history. The On-Balance-Volume (OBV) line has been steady and just turned slightly higher. There are a couple of upper shadows around $36, but a close above that level or area will turn it into support instead of minor resistance. The $33-$31 area should act as support in the meantime.
In this daily Point and Figure chart of AZEK, below, we can see that a trade at $36.38 will be a new high for the move up and refresh the uptrend. A price target of $42 is indicated.
Bottom line strategy: We do not have much price history to go on, but so far things are looking positive for AZEK.