In his first Executive Decision segment of Monday's "Mad Money" program, host Jim Cramer spoke with Chieh Huang, co-founder and CEO of Boxed, an e-commerce grocery platform. The company soon will come public via a reverse merger with Seven Oaks Acquisition (SVOK) . The special purpose acquisition company (SPAC) deal is valued at $900 million.
Huang admitted there are some trade-offs coming public via a SPAC rather than a traditional initial public offering (IPO), but in the end he said a SPAC was the best choice for Boxed. His company will use the proceeds from the deal to boost marketing and awareness and fund its expansion efforts.
The company provides groceries in bulk to consumers and businesses. Boxed also has opened itsr software platform to other retailers, making it a software as a service (SAAS) software provider as well.
Let's look at a chart of SVOK.
In this daily bar chart of SVOK, below, we can see a small base pattern in the $9.70 area. Prices have firmed above the 20-day and 50-day moving average lines. The On-Balance-Volume (OBV) line has jumped higher and the Moving Average Convergence Divergence (MACD) oscillator has moved above the zero line for an outright buy signal.
Bottom line strategy: Experienced traders could probe the long side of SVOK, risking to $9.50.