Manny Chirico, chairman and CEO of apparel maker PVH Corp. (PVH) , appeared on Mad Money Wednesday night to discuss his company's business. PVH previously announced that it is suspending its quarterly and annual guidance, as well as its dividend and stock buy-back program, amid the retail shutdown in many of its key markets.
Chirico said that while PVH is not highly leveraged and will see additional liquidity from the sale of its Speedo brand. He also noted PVH helped to source 1.5 million surgical masks from their Asian supply chain and donate them to New York area hospitals with more in the pipeline.
Let's check on the charts of PVH.
In the daily bar chart of PVH, below, we can see that the stock price has been in trouble long before the pandemic. PVH was up around $130 a share in late April of 2019 and now it is barely holding the $30 area. The slope of the 200-day moving average line has been negative for the past 12 months so the downtrend is not a new event. The slope of the shorter 50-day moving average line moved below the 200-day line in March for a death cross -- a dramatic way of saying a sell signal.
The On-Balance-Volume (OBV) line has been weak the past year and tells us that sellers of PVH have been more aggressive for a long time. The Moving Average Convergence Divergence (MACD) oscillator has been below the zero line in sell territory for much of the last year. Recently, the oscillator crossed to a cover shorts buy signal but it flies in the face of the longer-term downtrend.
In the weekly bar chart of PVH, below, we can see that the price decline is even worse than the daily chart indicates. Here we can see a peak around $170 in 2018 and now we are down around $30. Ouch. The slope of the 40-week moving average line has been bearish for many, many months.
The weekly OBV line has been weak for the past 12 months. The MACD oscillator is bearish on this longer time frame.
In this long-term monthly chart of PVH, below, it looks like prices could retest the lows of 2009.
In this Point and Figure chart of PVH, below, we used daily data. Here the chart suggests a potential downside price target in the $24 area. More pain ahead.
Bottom-line strategy: Shares of PVH have been in a downtrend for a long time. I see no bottoming action on the charts or from the indicators. Avoid.