For his "Executive Decision" segment of Mad Money Friday night, Jim Cramer interviewed Tim Boyle, president and CEO of Columbia Sportswear Co. (COLM) , after the company's huge 40-cents-a-share earnings beat that sent shares soaring 15.6%.
Boyle said Columbia had a terrific quarter and it all starts with great merchandise that performs well and people love. The company also announced a $200 million stock buyback program to further reward shareholders.
When asked about global sales, Boyle said that things are turning around in Europe and Columbia is now focusing their efforts on rebuilding their operations in China. We looked at COLM at the end of October where we said, "...investors could go long COLM. Look for gains to the $100-$103 area and then $110."
With COLM nearly at our $110 price target let's check out some updated charts and indicators.
In this daily bar chart of COLM, below, we can see that prices made a shallow dip in December and January before gapping sharply higher on Friday. Prices broke out of their eight month sideways consolidation pattern. COLM is well above the rising 50-day moving average line and the bullish 200-day line.
The daily On-Balance-Volume (OBV) line shows a strong rise from the beginning of the year, telling us that buyers of COLM have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator crossed above the zero line in late January for an outright go long signal which is still very much intact.
In this weekly bar chart of COLM, below, we can see the rally of last week without the gap made on Friday (a drawback of a weekly high, low, close chart). Prices are above the slightly rising 40-week moving average line.
The weekly OBV line has turned up and MACD oscillator gave a fresh outright go long signal.
In this Point and Figure chart of COLM, below, we see no gaps and no volume. Time is basically ignored too.
A new upside price target of $162.98 is being projected.
Bottom line strategy: Look for COLM to trade sideways for a few days before trying to move higher. Risk a close below $99 for existing and new longs. $120 and $160 are my upside price targets.