For his final "Executive Decision" segment of Wednesday's Mad Money program, Jim Cramer checked in with Marc Casper, chairman, president and CEO of Thermo Fisher Scientific (TMO) , the medical equipment maker.
Casper attributed Thermo Fisher's success during the pandemic to their investments and their capabilities. The company was able to mobilize quickly and scale their production to meet unprecedented demand for testing and research. He said PCR testing was relevant pre-pandemic and it will remain in demand for the foreseeable future.
Casper was also bullish about their acquisition of PPD, a clinical research company. The combined company will now be able to partner with biotech companies in the early research phase and help them all the way to the final product.
When asked about tensions with China, Casper noted that Thermo Fisher has been in China for 40 years and helps the country with air quality, food testing, medicine development and other critical services that have made them a trusted partner with a local presence.
Finally, when asked about the lessons learned from COVID-19, Casper said that while it took awhile for the world to mobilize to the crisis, the speed at which vaccines and therapies were developed, tested and deployed has been remarkable. Countries are now taking public health seriously and are planning for the future.
Let's check on the charts again. The charts were positive on June 3 where we wrote that "Trading volume on TMO recently has been heavy, but the stock did not crater. I take this as a sign of strength. Traders could buy strength risking below $435 for now."
In this updated daily Japanese candlestick chart of TMO, below, we can see that prices have rallied strongly from a June nadir. We can see a recent pullback into early October but then the bulls return quickly. Prices are trading above the 50-day and 20-day moving averages, both of which have positive slopes.
The On-Balance-Volume (OBV) line has been very strong and hardly dipped when prices corrected in the past year. The Moving Average Convergence Divergence (MACD) oscillator gave a new buy signal recently.
In this weekly Japanese candlestick chart of TMO, below, we can see a longer-term bullish picture. Prices are in an uptrend above the rising 40-week moving average line. The weekly OBV line has mirrored the climb in price and that is good. The MACD oscillator is bullish and pointed higher.
In this daily Point and Figure chart of TMO, below, we can see a price target in the $739 area.
In this weekly Point and Figure chart of TMO, below, we can see a longer-term target in the $968 area.
Bottom line strategy: Continue to hold longs from June but raise stops to $560 now. The $739 area is our next upside price objective.