In his second "Executive Decision" segment of Mad Money Wednesday night, Jim Cramer sat down with Rod Little, president and CEO of Edgewell Personal Care Co. (EPC) , the company which just acquired Harry's, the men's care products company co-founded by Andy Katz-Mayfield and Jeff Raider.
Little explained that Edgewell has a new management team and a new focus on global grooming, and the Harry's acquisition is just the beginning of that transformation. With Harry's, Edgewell will combine their global reach with the latest in digital marketing and online capabilities.
Let's see if the story and the charts are going in the same direction.
In the daily bar chart of EPC, below, we can see that the share price of EPC has been under pressure since August with prices nearly cut in half. EPC is below the declining 50-day moving average line and the slower-to-react 200-day line has been bearish the past twelve months.
The daily On-Balance-Volume (OBV) line has been telling us that sellers have been more aggressive but the Moving Average Convergence Divergence (MACD) oscillator is getting close to a cover shorts buy signal. An outright go long signal is nowhere near here and was only seen in February for a short period of time.
In the weekly chart of EPC, below, we can see that prices have been in a downtrend the past three years. The 40-week moving average line has had a negative or bearish slope the entire time.
The weekly OBV line has been neutral since early 2018. The MACD oscillator on this long time frame is bearish and pointed lower.
In this Point and Figure chart of EPC, below, we can see the downtrend and a nearby price target of $29. It would not surprise me if the price of EPC sinks lower than $29 in the months ahead.
Bottom-line strategy: EPC peaked back in 2015 and it has not yet reached a bottom. Remain defensive and look for opportunities elsewhere.