For his "Executive Decision" segment of Mad Money Monday night, Cramer spoke with Bill Newlands, president and CEO of Constellation Brands Inc. (STZ) , about his company's most recent quarter and their investment in Canopy Growth (CGC) , after the news that Canopy's CEO, Bruce Linton, was fired for poor performance.
Newlands reiterated that cannabis will be a $200 billion business over the next 10 years and Canopy remains the company best positioned to take advantage of those opportunities. But while they are winning in all of the markets the matter most, Newlands said it was time for the company to have a new leader who could accelerate their growth.
Turning to their other businesses, Newlands said that beer continues to be a strong performer, with Modelo seeing accelerating growth. Constellation continues to target between 7% and 9% growth for Modelo.
Let's kick back with a Modelo and check out the charts and see what may have changed in the past week.
In the daily bar chart of STZ, below, we can see some slight improvement in the indicators. Prices have traded sideways the past week as they hold above the bottoming/flat 50-day moving average line. The slower-to-react 200-day moving average line is still in a downtrend but starting to bottom.
The daily On-Balance-Volume (OBV) line has been steady this past week and the Moving Average Convergence Divergence (MACD) oscillator has turned up to potentially cross above the zero line.
In this weekly bar chart of STZ, below, we can see that prices are above the declining 40-week moving average line. The weekly OBV line is holding its own and the MACD oscillator is above the zero line.
In this Point and Figure chart of STZ, below, an upside price target of $234 is being projected. A trade at $201.41 will refresh the uptrend but a trade at $191.64 will weaken it.
Bottom-line strategy: In the past year or two I have been bullish and bearish on STZ. Right now the charts are looking slightly more bearish but I still want to see more signs of aggressive buying before making a commitment to the long side again.