For his final "Executive Decision" segment of Mad Money Wednesday evening, Jim Cramer checked in with Michael Neidorff, chairman and CEO of health plan provider Centene (CNC) .
Neidorff said that Centene's current focus is on expanding the company's gross margins, unlocking value and retiring debt to help bolster the balance sheet.
When asked about the recent settlement in a case regarding their pharmacy benefit services, Neidorff explained that while Centene would have prevailed in the case, the time, distraction and cost of fighting it in 22 jurisdictions made settlement the better offer.
Let's check out the charts and indicators of CNC.
In the daily bar chart of CNC, below, we can see that the shares made a big high/low range and a new high Wednesday. Prices closed in the middle of the range so the jury is still out.
Trading volume increased Wednesday but not significantly. The On-Balance-Volume (OBV) line shows a small increase but is still below its late May zenith. The Moving Average Convergence Divergence (MACD) oscillator is pointed down but has begun to narrow.
In the weekly Japanese candlestick chart of CNC, below, we see a "jumpy" picture. Prices have moved higher from late 2019 but the trend has not been even -- many advances and retracements. The slope of the 40-week moving average is currently positive.
The weekly OBV line has been stalled the past three months. The MACD oscillator is above the zero line but has been narrowing in recent weeks.
In this daily Point and Figure chart of CNC, below, we can see that prices made a new high for the move up to refresh the uptrend and a $93 price target is being projected.
In this weekly Point and Figure chart of CNC, below, we can see a $103 price target.
Bottom-line strategy: CNC has been a hard stock to trade and to analyze and today is no different.
