Imax (IMAX) Marked As A Barbarian At The Gate

Trade-Ideas LLC identified Imax (IMAX) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Imax

(

IMAX

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Imax as such a stock due to the following factors:

  • IMAX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.3 million.
  • IMAX has traded 1.9 million shares today.
  • IMAX traded in a range 232.9% of the normal price range with a price range of $1.83.
  • IMAX traded above its daily resistance level (quality: 48 days, meaning that the stock is crossing a resistance level set by the last 48 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on IMAX:

IMAX Corporation, together with its subsidiaries, operates as an entertainment technology company specializing in motion picture technologies and presentations worldwide. IMAX has a PE ratio of 32. Currently there are 7 analysts that rate Imax a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Imax has been 618,300 shares per day over the past 30 days. Imax has a market cap of $2.1 billion and is part of the services sector and media industry. The stock has a beta of 1.08 and a short float of 11.4% with 8.97 days to cover. Shares are down 15.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Imax as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 4.2%. Since the same quarter one year prior, revenues rose by 48.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • IMAX's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • IMAX CORP has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, IMAX CORP increased its bottom line by earning $0.78 versus $0.56 in the prior year. This year, the market expects an improvement in earnings ($1.01 versus $0.78).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 2336.6% when compared to the same quarter one year prior, rising from $0.39 million to $9.53 million.
  • The gross profit margin for IMAX CORP is rather high; currently it is at 63.41%. Regardless of IMAX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 10.34% trails the industry average.

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