• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

I Wouldn't Want to Be in Brunswick's Boat Right Now

Here's how to navigate as the shares have weakened from February into April.
By BRUCE KAMICH
Apr 29, 2022 | 10:17 AM EDT
Stocks quotes in this article: BC

For his second "Executive Decision" segment of Mad Money Thursday night, Jim Cramer spoke with David Foulkes, CEO of boat maker Brunswick Corp. (BC) , which just delivered a 20-cents-a-share earnings beat. Shares of Brunswick trade at just 7.6 times earnings.

Foulkes said Brunswick continues to see strong sales in all of its segments, including propulsion and service. Now is the time for Brunswick to shine, he said.

Supply-chain constraints continue to challenge the company, however. Inventories are down, with just 5,000 units among the company's 900 dealers.

When asked about rising interest rates, Foulkes said rates are not yet at levels where they would affect demand. But, he noted, only about 50% of boats purchased are financed.

In our last review of Brunswick on February 2 we wrote that, "My wife and I have enjoyed boating with cousins in Mystic, Connecticut, and with friends at the Jersey shore -- all the fun and none of the responsibility. Chart-wise, Brunswick is showing us a small upside price target with the risk of further declines. I would avoid BC as an investment but I do plan on taking a boating safety class this spring. Starting small."

Let's see how things are going today and where to navigate.

In the updated daily bar chart of BC, below, we can see that the shares have weakened from February into April. Trading volume has increased in the past two months but prices have remained weak so I would assume that some traders are voting with their feet. Prices are trading below the declining 50-day and the declining 200-day moving average line.

The movement of the On-Balance-Volume (OBV) line has been choppy in recent weeks but the longer-term trend has been lower. The Moving Average Convergence Divergence (MACD) oscillator is bearish but gave a cover shorts buy signal earlier this month.

In the weekly Japanese candlestick chart of BC, below, we see a bearish picture. Prices are in a downtrend and trade below the declining 40-week moving average line. The weekly candles are spinning tops but there is no bullish confirmation. A red (bearish) candle this week will refresh the downtrend.

The longer trend on the OBV line is down and the MACD oscillator is bearish.

In this daily Point and Figure chart of BC, below, we can see a potential downside price target in the $67 area.

In this second Point and Figure chart of BC, below, we see that the software is projecting a $57 downside price objective.

Bottom-line strategy: Sign up for boating and safety lessons but defer your purchases of BC for now.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Earnings | Investing | Stocks | Technical Analysis | Mad Money | Executive Interview | Consumer Products | Consumer Discretionary

More from Stocks

Hopeful Investors Get Scraped by the Bear

James "Rev Shark" DePorre
Jun 28, 2022 4:24 PM EDT

Bulls hoped that a bottom had been found, but they overlooked the reasons behind the rally last week.

Bed Bath & Beyond's Weakness is Likely to Persist

Bruce Kamich
Jun 28, 2022 2:36 PM EDT

The shares have been in the single digits since early May.

Let's Look Under the 'Shell' of This ESG-Style Fund

Mark Abssy
Jun 28, 2022 2:00 PM EDT

One of the Nuveen Global Net-Zero Transition exchange-traded fund's largest holdings is Shell, so let's drill down on this supposedly environmentally friendly ETF.

Taking Another Look at ON Semiconductor's Charts

Bruce Kamich
Jun 28, 2022 1:43 PM EDT

Here's what to watch for.

Feeling Queasy Over Moderna's Outlook? Investors May Still Get Their Shot

Brad Ginesin
Jun 28, 2022 12:45 PM EDT

With an expected dip for 2023, the pharmaceutical company could see its mRNA technology win big over the long term -- and investors could be rewarded.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 11:56 AM EDT STEPHEN GUILFOYLE

    Stocks Under $10

    Check out what's going on in the Stocks Under $10 ...
  • 12:04 AM EDT PAUL PRICE

    Two Good Signs -- Especially for Small-Cap Investors

  • 12:10 AM EDT PAUL PRICE

    More Insider Buying in American Woodmark (AMWD)

    American Woodmark , which I've discussed here fr...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login