In his second "Executive Decision" segment of Mad Money Monday evening, Cramer sat down with Chip Bergh, president and CEO of Levi Strauss & Co. (LEVI) , the 166-year old apparel maker that's on the forefront of innovation.
Cramer met with Bergh at Levi's Eureka Innovation Lab in San Francisco. Bergh explained that the lab is conveniently located just a few blocks from his company's headquarters and is close to both designers and merchants, but also some of the finest technology minded people in the country. Some of the issues Levi's is tackling at Eureka is how to reduce the amount of labor, water and chemicals that goes into making apparel like jeans.
Read more about Levi's and Cramer's interview with Bergh here.
We do not have a lot of price history to work with on LEVI, but let's check out how the charts fit.
In the daily bar chart of LEVI, below, we can see some choppy trading for a few weeks after the company went public and then a decline to the $16 area in August. Prices bounced into early October and then declined to around $17 where they have stabilized in recent weeks. Using the 20-day and 50-day moving averages (instead of 50-days and 200-days) we can see that prices have been testing the 20-day line and remain below the 50-day line, which is slowly rolling over.
The daily trading volume has been light and the On-Balance-Volume (OBV) line has been moving sideways since August. Neither buyers or sellers of LEVI have been aggressive.
The Moving Average Convergence Divergence (MACD) oscillator is below the zero line in bearish territory.
In this Point and Figure chart of LEVI, below, we can see that prices have held the $16.94 area. A rally to $18.13 is probably needed to strengthen this chart.
Bottom-line strategy: Levi's is an iconic brand but the stock needs a period of sideways price action/accumulation before it can stage a sustained advance. Let's check back in a few months.