"I don't recommend a stock for a takeover if the earnings are bad and these are bad," Cramer told the called.
Let's check and see what intelligence we can glean from the charts and indicators of the owner of Victoria's Secret and other retailers.
In this daily bar chart of LB, below, we can see that prices declined to a late August and early September low and made a retest of that low in late November. Prices have firmed slightly the past two months to rise above the rising 50-day moving average line and reach the underside of the still declining 200-day moving average line.
Trading volume has been heavy since late November and the On-Balance-Volume (OBV) line has improved modestly. Buyers of LB have become more aggressive, but not on a regular basis. The Moving Average Convergence Divergence (MACD) oscillator moved above the zero-line clearly in January for an outright-buy signal.