The company reported its first earnings as a public company this week.
Scherzinger said the macro trends towards backyard living continue to work in Weber's favor. The company delivered 19% top-line growth this quarter, after increasing top-line growth of 41% in the same quarter last year.
Much of Weber's renaissance stems from new product innovations, like their Traveler portable grill for gatherings and tailgating. Scherzinger was also bullish on their new Weber Connect Hub, which connects your grill to the cloud for the perfect grilling experience.
When asked about their debt, Scherzinger said Weber is investing in a new plant in Poland which will change their supply chain and cost structure so they will be able to lower debt even quicker.
We don't have a lot of trading history but let's check out the charts of WEBR.
In this daily Japanese candlestick chart of WEBR, below, we can see that prices had an initial IPO "pop" and then declined to a low in August and a lower low in early September. We only have enough price history for a 20-day moving average line which is flat now. The trading volume increased in recent days as prices perked up.
The daily On-Balance-Volume (OBV) line shows an "uptick" and the 12-day price momentum study shows equal lows in August and September as prices made lower lows. This difference is a bullish divergence. This is not a big or significant bullish divergence but it may be just enough to help traders probing the long side.
In this daily Point and Figure chart of WEBR, below, we can see that a trade at $16.57 will hopefully improve the picture.
Bottom line strategy: In full disclosure I have a Weber grill and I pretty much grill year round. Summer, fall, spring and even winter. Aggressive traders could go long WEBR at current levels risking a close below $13.50. Conservative traders could wait for strength above $17.50 before going long. Plenty of time to age or marinate that steak.