In his first "Executive Decision" segment of Mad Money Thursday evening, Jim Cramer spoke with Dylan Lissette, CEO of Utz Quality Foods, and Roger Deromedi, co-founder of Collier Creek Holdings, which will be coming together in a reverse merger later this quarter.
Lissette said that Utz is a 100 year old, family-owned company that began in 1921. They're now looking forward to their next century by coming together with Collier as a publicly traded company.
When asked why salty snacks are such a great category, Lissette said during the pandemic, people just want comfort food and that means returning to brands they know and trust.
Investors can currently buy shares of Collier under the ticker (CCH) . When the transaction closes, the ticker will change to UTZ and the company will be called Utz thereafter. Until then, let's check out the charts of CCH.
In the daily bar chart of CCH, below, we can see that we do not have a lot of "active" price history and that the trading volume is very light. Not a good situation for chart readers like myself. Prices are trading above the rising 50-day moving average line and above the rising 200-day moving average line.
The trading volume shows a pickup from late March and the On-Balance-Volume (OBV) line is constructive with a jump higher in June. The Moving Average Convergence Divergence (MACD) oscillator is in a take profits sell mode but could cross to the upside for a fresh outright buy signal if prices strengthen from here.
In this daily Point and Figure chart of CCH, below, we can see some limited activity from April (look for the "4" on the chart). A trade at $15.00 will be an upside breakout and would probably give us a price target of $23-$24 for starters.
Bottom-line strategy: For technically oriented traders we do not have a lot of price history to work with. Perhaps the best thing to do is to wait for more activity under the new ticker symbol of UTZ.