In his first Executive Decision segment of "Mad Money" Tuesday, host Jim Cramer spoke with Jerome Griffith, president and CEO of apparel retailer Lands' End Inc. (LE) .
Griffith noted that Lands' End is the fifth-largest single-brand retail website in the U.S. He said after spinning off from Sears and bringing on new management in 2017, his company has been re-establishing itself.
While some Lands' End shoppers prefer physical stores, Griffith said the company is taking a pause on store openings to focus on technology.
Let's take a pause and check out the charts of LE.
In this daily bar chart of LE, below, we can see that investors in the stock have had a hard time the past 12 months. Prices declined sharply from December to early April, when prices finally made a low and got a lift from the broad market rally. LE is now trading above the rising 50-day moving average line but still below the now-bottoming 200-day moving average line. The trading volume since the low has not been consistent nor rising with the price action, which is a disappointment for old-time chart readers. The On-Balance-Volume (OBV) line did not bottom until May and has only made a minor recovery. The Moving Average Convergence Divergence (MACD) oscillator is struggling to stay above the zero line.
In this weekly bar chart of LE, below, we can see that prices have been in a decline since 2018 -- well before the pandemic. LE is trading below the declining 40-week moving average line, so we know the long-term trend is still bearish. The weekly OBV line shows weakness and the MACD oscillator finally gave us a cover shorts signal in May.
In this daily Point and Figure chart of LE, below, we can see that prices have reached their price target. LE could rally more, but sideways price action is more likely.
In this weekly Point and Figure chart of LE, below, we can see the long-term downtrend and a long-term price target of around $18.
Bottom line strategy: It looks as though LE made a low in April-May, but a lot more needs to be done to hammer out a worthwhile base. It pays to buy leaders in the market and not laggards.