In his second "Executive Decision" segment of Mad Money Thursday night, Jim Cramer sat down with Lawrence Kurzuis, chairman, president and CEO of spicemaker McCormick & Co. (MKC) .
Kurzuis said it's been two and a half years since they acquired Frank's hot sauce and French's mustard and in that time, they've delivered an 80% return to shareholders. McCormick recently introduced Old Bay hot sauce online and the product sold out in just 30 minutes.
Let's check out the latest charts of MKC to see if the stock has the right ingredients. We looked at the charts of MKC not long ago and wrote that, "With an overall mixed set of charts and indicators I am not a confident bull on MKC. If you do decide to go long you should not risk more than a break of $160."
In the daily bar chart of MKC, below, we can see that prices slipped lower in recent days. MKC is testing the rising 200-day moving average line. (Looking at a three-year daily bar chart, which is not shown here, previous tests of the 200-day line proved to be successful.)
The daily On-Balance-Volume (OBV) line has weakened a bit and the Moving Average Convergence Divergence (MACD) oscillator is now below the zero line generating an outright sell signal.
In this weekly bar chart of MKC, below, we can see prices testing the rising 40-week moving average line. The weekly OBV line and the MACD oscillator both worked lower.
In this first Point and Figure chart of MKC, below, we used daily price data. Here a $154 price target is being projected.
In this second Point and Figure chart of MKC, below, we used weekly price data. A potential price target of $197 is being projected.
Bottom-line strategy: While it looks like MKC could move higher in the long-term, the problem is the weakness indicated in the short-run.
