For his second "Executive Decision" segment of Mad Money Tuesday night, Jim Cramer spoke with Mark Schiller, CEO of the Hain Celestial Group Inc. (HAIN) , the packaged foods maker.
Schiller explained that after acquiring 55 brands over 20 years, Hain Celestial had simply gotten too big and complex for both management and shareholders. His mission has been to simplify and focus the company, which began with shedding 16 lesser-performing brands so far.
The new Hain Celestial is focused on food as well as health and wellness, Schiller said, with products from hand sanitizers and skincare products to energy drinks and tea.
Let's get a relaxing cup of tea and take a look at the charts and indicators.
In the daily bar chart of HAIN, below, we can see that the shares have doubled from their March nadir. HAIN is trading above the rising 50-day moving average line after a test/break of the line in early November. The slope of the 200-day moving average is positive and the October/November correction in HAIN brought prices close to this longer-term indicator.
The On-Balance-Volume (OBV) line made a new high in November to confirm the price action. The Moving Average Convergence Divergence (MACD) oscillator has been mostly above the zero line since April.
In the weekly bar chart of HAIN, below, we can see a large saucer pattern -- a classic base pattern. Prices are above the rising 40-week moving average line.
The weekly OBV line shows a steady rise for the past two years and the MACD oscillator has crossed to the upside for a fresh outright buy signal.
In this daily Point and Figure chart of HAIN, below, we can see a potential price target in the $51 area.
Bottom-line strategy: I like the base pattern I see on the weekly bar chart (above). With a Point and Figure target of $51 we feel good recommending a long position at current levels risking $34.
