For his second "Executive Decision" segment of Mad Money Tuesday night, Jim Cramer spoke with Aaron Jagdfeld, chairman and CEO of Generac Holdings (GNRC) , the generator and power storage provider.
Jagdfeld explained that our nation's energy grid is quickly evolving from a centralized, carbon-based model to a modern, distributed and digital model that focuses heavily on renewable energy. That's why Generac is evolving into becoming a services and solutions provider with the recent acquisition of Embala Power Networks.
Jagdfeld said that Embala is a cloud platform that aggregates individual solar and generator installations into virtual power plants that utilities can use to help manage their power grid. During peak times, hundreds or even thousands of generators, solar installations and storage systems can be switched on remotely.
Cramer noted that with solutions like Embala, owning a generator or a renewable power setup can actually deliver a return on the homeowner's investment.
Let's check out the charts of GNRC. We last looked at the company on August 28th and wrote that, "When compared to the 200-day moving average line, GNRC is extended or overbought. With the On-Balance-Volume line stalling on the weekly chart and the daily MACD oscillator showing weakness on the daily chart we could see GNRC turn sideways to work off its overbought condition. Longer-term, the $223 and $250 area are our next price targets."
GNRC indeed turned sideways for much of September before resuming the uptrend.
In this daily bar chart of GNRC, below, we can see that prices gapped higher in late September and have rallied towards our $223 price target. GNRC is trading above the still rising 50-day moving average line and the bullish 200-day moving average line.
The On-Balance-Volume (OBV) line has continued its rise of the past 12 months and the Moving Average Convergence Divergence (MACD) oscillator recently crossed to the upside for a fresh outright go long signal.
In this weekly bar chart of GNRC, below, we can see a powerful rally. Prices are above the rising 40-week moving average line.
