In his first "Executive Decision" segment of Mad Money Tuesday evening, Jim Cramer spoke with Glen Tullman, founder and executive chairman of Livongo Health (LVGO) , the health technology platform with shares up 68% in just the past month.
Tullman said now more than ever it's important for patients with preexisting conditions to have more information and more choices when it comes to their health. Livongo believes in consumer-directed health options and makes it easier than ever for patients to manage their own care.
This is especially important during Covid-19, Tullman said, because 78% of all ICU admissions and 90% of all Covid-19 deaths stem from preexisting conditions. Those with diabetes and hypertension are best left at home and not crowding doctors' offices where they risk infection.
Livongo is taking the industry by storm and not just with large companies. The company now has over seven million federal government workers enrolled in their programs.
We looked at the charts of LVGO on July 13, writing that, "Traders who can tolerate some risk could go long LVGO in the $110-$100 area if available. Risk a close below $90 for now. The $150 area is our only price target at the moment ($200 and $300 are possible targets if LVGO makes a ten-fold rally from its base).
Let's check and see if anything has changed recently.
In this daily bar chart of LVGO, below, we can see that our suggested stop below $90 has survived and prices are poised to make new highs. LVGO is above the rising 50-day moving average line as well as the rising 200-day line.
The On-Balance-Volume (OBV) line remains strong and continues to tell us that buyers of LVGO are more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is bullish.
In this first weekly Point and Figure chart of LVGO, below, we used a percentage scaling and here the chart shows a potential $150 price target.
In this second weekly Point and Figure chart of LVGO, below, we used close only price and can see a price target of $272.
Bottom line strategy: The bulls are in control of LVGO and our new price targets are $150 and then $272.