In his "Mad Money" show Friday night, Jim Cramer sat down with Rowan Trollope, CEO of Five9 Inc. (FIVN) , a stock that's risen 600% since its IPO.
Trollope explained that Five9 allows companies to operate intelligent call centers in the cloud that allow customers to be treated like humans. For companies like Lululemon Athletica (LULU) , agents are able to see information about every customer that's calling in before they even pick up the phone. Lulu is also able to use Five9 to scale up or down their number of available agents in as little as an hour to meet demand.
Trollope added that unlike some cloud companies, Five9 is cash flow positive and grows itself responsibly. He said the company does not have a "growth at all costs" model, and is running the business for the long term.
Five9 is not in the telemarketing or robocalling business, Trollope said, they are the gold standard of how customer service should be done. Let's check and see if we can find any gold on the charts.
In this daily bar chart of FIVN, below, we can see that prices gapped to the upside earlier this month and recently broke out over the August highs. Prices are above the rising 50-day moving average line as well as the rising 200-day line. The On-Balance-Volume (OBV) line has been in an uptrend the past 12 months and tells us that buyers of FIVN have been more aggressive. The rise in the indicators helps to confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish configuration.
In this weekly bar chart of FIVN, below, we can see that prices are up significantly over the past three years. Prices are above the rising 40-week moving average line, which has been a great tool for the past three years as tests of the line has been a buying opportunity several times. The weekly OBV line is bullish and has moved up to a new high to confirm the rally. The weekly MACD oscillator has been above the zero-line the entire time and just turned up to a fresh go long signal.
In this first Point and Figure chart of FIVN, below, we can see a $69 price price target.
In this second Point and Figure chart of FIVN, below, we used weekly close only data and a price target of $95 became visible.
Bottom line strategy: Traders can go long FIVN at current levels, risking a close below $62 for now; $69 and then $100 are our price targets.
