For another "Executive Decision" segment of Mad Money Thursday night, Jim Cramer spoke with David Foulkes, CEO of Brunswick (BC) , the boat maker which just reported another fantastic quarter.
Foulkes started off by saying that Brunswick has something for everyone. The company manages 17 brands and 80% of boats they sell cost less than $50,000. Brunswick has an entry point for everybody.
Foulkes was also excited about their Freedom Boat Club, which now boasts 67,000 members looking for access to boating without having to purchase their own.
Foulkes said they continue to pack more and more convenience and technology into all of their boats, making them more safe and enjoyable.
Let's check out the charts of BC again. In our last review on February 8, we wrote that "The price of BC has tripled since its March nadir, so like I wrote in early November I would not be in a rush to go long BC right now. In hindsight early November turned out to be a buying opportunity. I guess I am not much of a boater."
In this daily bar chart of BC, below, we can see that prices have been making a fresh bottom pattern the past two to three months. Prices are trading above the rising 50-day moving average line as well as the bullish 200-day line.
The On-Balance-Volume (OBV) line has been steady the past three months but may have started a new upturn. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line. Prices could soon retest their May zenith.
In this weekly Japanese candlestick chart of BC, below, we see a constructive (bullish) picture. Prices are in an uptrend above the rising 40-week moving average line. The weekly OBV line is showing some improvement in the past two months. The MACD oscillator has narrowed and is close to a bullish crossover and buy signal.
In this daily Point and Figure chart of BC, below, we can see an upside price target in the $120 area.
In this weekly Point and Figure chart of BC, below, we can see a longer-term price target in the $148 area.
Bottom line strategy: Traders could go long BC or add to existing longs around $104. Risk to $93. Our price targets are $120 and then $148.
