For his final "Executive Decision" segment of Mad Money Wednesday evening, Jim Cramer checked in with Vivek Shah, CEO of J2 Global (JCOM) , the digital media platform that just reported strong earnings despite the pandemic.
Shah explained that while this quarter was brutal for the publishing industry overall, the growth and strength of J2 has been remarkable. He said J2 isn't focused on driving impressions, they're focused on their customers' goals. And with so many different verticals, from technology to gaming and healthcare, advertisers are increasingly preferring the quality of their portfolio.
Shah said the interest in health content has been particularly strong, and not just for Covid-19 information. He said overall, people are searching for physical and mental wellness content and J2's properties have the information they seek.
Finally, Shah said they feel J2 shares represent a great value, which is why they continue to buy back their shares. Let's check out the charts of JCOM to see if investors agree with Shah.
In this daily bar chart of JCOM, below, we can see a stock that did not make a low until July after a decline from January. Prices did bounce with the broad market from late March but that strength fizzled out in May and June. Prices gapped higher recently but the slope of the 50-day moving average line is still negative and so is the slope of the slower-to-react 200-day moving average line.
The On-Balance-Volume (OBV) line shows a decline from January into late July telling us that even with the March bounce, traders have been more aggressive sellers of the stock.
The trend-following Moving Average Convergence Divergence (MACD) oscillator gave a cover shorts buy signal in July and is now close to crossing the zero line for an outright go long signal.
In this weekly bar chart of JCOM, below, we went back five years to get some additional perspective. Prices have not trended for long so probably only nimble traders have been able to profit by the up and down swings.
JCOM is below the declining 40-week moving average line. The weekly OBV line shows a declining pattern the last five years. The MACD oscillator has followed prices lower this year.
In this daily Point and Figure chart of JCOM, below, the price gap on the daily bar chart disappears. The software is projecting a possible upside price target in the $120 area.
Bottom line strategy: The weekly bar chart of JCOM (above) does not make me optimistic even though the Point and Figure chart suggests an upside move. JCOM has overhead chart resistance and little in the way of aggressive buying. Some of the recent price gap could get filled so I would be in no particular rush to be a buyer of JCOM.