In his first Executive Decision segment of "Mad Money" last Friday, host Jim Cramer spoke with David Foulkes, CEO of boat maker Brunswick Corp. BC, which just posted monster first-quarter earnings on 50% revenue growth.
Foulkes said the momentum Brunswick saw in 2020 during the pandemic has carried over into 2021, leading the company to another strong quarter with strength in all parts of its business. He added that the first boat show of the year was just held in Florida and saw strong attendance and lots of interest in their refreshed lines of products.
Foulkes was also excited about Brunswick's Freedom Boat Club, which is now available at 280 locations and boasts 40,000 members. Brunswick is also seeing a big uptick in women and minorities entering the sport.
Let's check out the charts of Brunswick, which we last reviewed on Feb. 8, when we cited a $102 Point and Figure target. How are things doing now?
In this updated daily bar chart of BC, below, we can see that prices are in a steady uptrend. Prices are trading above the rising 50-day moving average line and above the rising 200-day line. The On-Balance-Volume (OBV) was moving sideways for several months but just broke out to a new high to confirm and support the price gains. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since October and is pointed up.
In this weekly bar chart of BC, below, we see a positive picture. Prices are in an uptrend above the rising 40-week moving average line. The weekly OBV line has been moving in a positive manner since March 2020. The MACD oscillator has narrowed but remains in a bullish alignment above the zero line.
In this daily Point and Figure chart of BC, below, we can see a potential upside price target in the $151 area.
Bottom line strategy: BC is pointed higher. Trade from the long side, risking below $97 where the 50-day moving average line currently intersects. The $150 area is our next price objective.