• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

The Long Side of Funko Will Probably Not Be Fun in the Months Ahead

The charts have definitely turned weak, making new lows for the move down from an early September zenith.
By BRUCE KAMICH
Nov 12, 2018 | 09:30 AM EST
Stocks quotes in this article: FNKO

For his "Executive Decision" segment of "Mad Money" Friday night, Jim Cramer spoke with Brian Mariotti, CEO of Funko. (FNKO)  . FNKO is a specialty toy maker that sank sharply Friday despite reporting better-than-expected results. Mariotti said that Funko is an index fund of pop culture, licensing over 550 unique properties that span everything from sports to music, TV, movies, video games and more.

One of their biggest competitive advantages is speed, he said, as they can respond to the latest trends with products on the shelves in just weeks. I am not sure what investors saw or did not see in the numbers last week, but the charts have definitely turned weak, making new lows for the move down from an early September zenith.

In this daily bar chart of FNKO, below, we can see a big rally from $6 to $31 in little more than eight months but prices have given back more than half of those gains in just two months. Markets can often give up gains faster than they accrue. Notice the volume spike as prices peaked? Investors voted heavily with their feet.

The daily On-Balance-Volume (OBV) line quickly peaked and its decline tells me that sellers of FNKO have turned more aggressive.

The trend-following Moving Average Convergence Divergence (MACD) oscillator quickly turned to a take profits sell in early September and an outright sell in late September. A fresh outright sell signal is close with the price weakness on Friday.

In this weekly bar chart of FNKO, below, we can see a big key reversal week with heavy volume in early September. This dramatic outside-week defines the peak. Prices are now close to the rising 40-week moving average line.

The weekly OBV line is bearish and so is the MACD oscillator.

In this Point and Figure chart of FNKO, below, we can see a downside price target of $10 being projected.

Bottom line strategy: With a big reversal pattern in September and a sharp downside move on Friday, FNKO is in terrible technical shape. Follow-through selling and weakness to the $10 area is anticipated.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing

More from Investing

In This Market, If You Can't Beat 'Em, Join 'Em

James "Rev Shark" DePorre
Jan 26, 2021 5:50 PM EST

There is no way to know how long this theme of strong small-cap speculation and short squeezes will continue, but I have no interest in fighting it.

Is Live Ventures Taking Notes From GameStop?

Bruce Kamich
Jan 26, 2021 3:09 PM EST

Let's see what we might glean from the charts.

Ranpak Holdings May Double or More in 2021

Bruce Kamich
Jan 26, 2021 2:35 PM EST

Here's what aggressive traders should look for.

Jim Cramer: Ready, Set, Go!

Jim Cramer
Jan 26, 2021 1:30 PM EST

Here's why you should wait for a dip -- not the vaccine glut -- to start buying.

Let's Dare to Take Another Look at GameStop

Bruce Kamich
Jan 26, 2021 1:25 PM EST

Here's what we found in the latest GME charts.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 09:35 AM EST CHRIS VERSACE

    Another Big Winner for Stocks Under $10

    We're ringing the register Tuesday morning.
  • 08:05 AM EST GARY BERMAN

    Tuesday Morning Fibocall for 1/26/2021

    SPX (Long-Term View) The 1/21/21 NEW high @ 3861...
  • 09:52 AM EST GARY BERMAN

    INDU/DIA 20 DMA

    Fibocall: The DIA has the 20 DMA @ 307.81 and w...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login