For his Executive Decision segment of "Mad Money" Thursday, Jim Cramer spoke with Peter Gassner, CEO of Veeva Systems Inc. (VEEV) , a technology provider to the life science industry.
Gassner said Veeva's customers have risen to the challenge of Covid-19 and are hard at work on testing, treatment and prevention measures to combat the virus. Veeva's technologies are helping to connect doctors to pharma reps virtually.
Gassner said after achieving $1 billion in annual revenues ahead of schedule Veeva now is targeting $3 billion in revenue by 2025.
Let's target the charts here on Friday morning.
In this daily bar chart of VEEV, below, we can see the price of VEEV has been trending lower since last July. Prices did decline further from the middle of February to the middle of March with the broad market, but what is really interesting is that the indicators are in pretty good shape right now. Prices have rebounded recently and are testing the underside of the slightly declining 50-day moving average and the declining 200-day moving average line.
Trading volume increased in March versus February and the On-Balance-Volume (OBV) line has not shown much movement since the middle of June. The trend-following Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside for a cover shorts buy signal. The zero line is not far above here and we soon could see an outright go long signal.
In this weekly bar chart of VEEV, below, we see an OK picture. Prices are below the declining 40-week moving average line, but it will not take much of a rally here on Friday to close back above it. The weekly trading volume seems average and the weekly OBV line still shows a rise from December, which is hard to believe in this weak environment. The MACD oscillator on this longer time frame is hugging the zero line so we could see a fresh buy signal if prices improve from here.
In this daily Point and Figure chart of VEEV, below, we can see a potential upside price target of $215, but also that a trade at $152.44 will be an upside breakout.
Bottom line strategy: VEEV looks like it can trade higher in 2020. Traders could go long on strength above $153 and $155 (above the moving averages). Risk a close below $130 for now. Our upside price targets are $175 and then $200 and $215. Take things one step at a time.