In his first "Executive Decision" segment of Wednesday's Mad Money program, Jim Cramer spoke with Joe Hamrock, president and CEO of NiSource (NI) , the utility company.
NiSource has pledged to reduce its carbon emissions 90% by the year 2030 and Hamrock said it's on track to make that target.
Storage is also a key factor in any renewable energy plan, as is a highly-skilled workforce to get the job done. That's why NiSource is investing in training the workforce of tomorrow so they'll have the skills they need to navigate a tight labor market.
Cramer said if you're going to buy a utility, you need to be sure they're getting off of coal and transitioning to a renewable future, just like NiSource is.
Let's check out the charts before thinking about a purchase of shares. We looked at NI back on September 17 and recommended that "Investors could probe the long side of NI at current levels risking a close below $23. $39 and $101 are the price targets."
In this updated daily bar chart of NI, below, we can see that buying shares of NI in late September has been working out. Prices have improved the past few weeks and have stayed above our recommended stop loss level. NI is now trading above the rising 200-day moving average line and the bottoming 50-day line.
The On-Balance-Volume (OBV) line has been bottoming since late September and the Moving Average Convergence Divergence (MACD) oscillator has moved above the zero line for an outright buy signal.
In this weekly Japanese candlestick chart of NI, below, we can see that prices tested the rising 40-week moving average line and eventually firmed back above it. The OBV line is very firm and looks like it is at or close to a new high. The MACD oscillator has narrowed and is close to a bullish crossover.
In this daily Point and Figure chart of NI, below, we can see a potential upside price target in the $36 area.
In this weekly Point and Figure chart of NI, below, we see the same $36 price target.
Bottom line strategy: Continue to hold longs that were recommended in September. Add to positions on strength above $29.