For his second "Executive Decision" segment of Mad Money Wednesday night, Jim Cramer spoke with William Greenman, president and CEO of Cerus Corp. (CERS) , the plasma transfusion company that is in the fight to beat Covid-19.
Greenman said Cerus got its start in 2015, fighting the Ebola outbreak. Now with Covid-19, they are operating with 65 blood centers around the world.
Greenman added that there are many studies happening around the world to quantify the benefits of blood transfusions and how they can help Covid-19 patients. However, blood donations have plummeted significantly since stay-at-home orders began.
Let's check out the charts of CERS (and also consider giving a donation of blood, platelets or plasma).
In the daily bar chart of CERS, below, we can see that prices have rallied sharply from its March low. CERS is now trading above the rising 50-day moving average line and above the positively sloped 200-day moving average line. We can also see a bullish golden cross of these two averages in late April.
Trading volume has been heavier than average since late February. The On-Balance-Volume (OBV) line has been rising since early December and tells me that buyers of CERS have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in early April for a buy signal and now looks like it is turning upward again for a fresh buy signal.
In the weekly bar chart of CERS, below, we can see that prices and their derivatives, a.k.a. indicators, are in a better position than they have been in years. Prices are above the rising 40-week moving average line.
The weekly OBV line shows an uptick from March but is still in a longer-term sideways pattern. The MACD oscillator moved above the zero line in late April for an outright go long signal.
In this Point and Figure chart of CERS, below, we can see a lot of price history. The chart shows a tentative upside price target of $13.25.
Bottom-line strategy: CERS moved up significantly from the March low but our Point and Figure chart suggests that the shares could double from here in the months ahead. Traders willing to risk a close below $5 could go long CERS on available weakness.