Excelerate Energy Could... Accelerate in the Weeks Ahead

Shares of the liquified natural gas company are up 20% since their debut this year.

For his second "Executive Decision" segment on Mad Money Thursday evening, Jim Cramer sat down with Steven Kobos, president and CEO of Excelerate Energy ( EE) , the liquified natural gas company that's home to 20% of the world's floating LNG import terminals.

 

Shares of Excelerate have risen 20% for the year (but we have little price history to work with). 

 

Kobos explained that LNG is super chilled to make it a liquid that can be transported, but when it arrives at its destination, it needs to be reheated and turned back into a high-pressure gas. That's what Excelerate's terminals do, and they do it for far less than building a ground-based terminal from scratch.

Given the world's renewed focus on energy security and need for natural gas, Excelerate's terminals are in greater demand. The company is opening markets around the world. Bangladesh is just one example, and Excelerate is now supplying 25% of the country's natural gas needs with two terminals. 

Let's check out two EE charts. 

In the daily bar chart of EE, below, we can see that the shares do not have much history to check. Despite this handicap, the shares are trading above the short but rising 20-day moving average line.

The trading volume is light but the daily On-Balance-Volume (OBV) line is going up telling us that buyers of EE are more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line. 

 

In this daily Point and Figure chart of EE, below, we can see an upside price target of $37. 

 

Bottom-line strategy: Traders who understand the risk of buying a relatively new issue could go long EE at current levels if they can risk to $25. On the upside the $37 area is our tentative price target.

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