Trade-Ideas LLC identified

Imax

(

IMAX

) as a "dead cat bounce" (down big yesterday but up big today) 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 $32.8 million.
  • IMAX has traded 575,434 shares today.
  • IMAX is up 3.4% today.
  • IMAX was down 11.4% yesterday.

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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 41. 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 826,800 shares per day over the past 30 days. Imax has a market cap of $2.2 billion and is part of the services sector and media industry. The stock has a beta of 1.07 and a short float of 16.9% with 7.33 days to cover. Shares are down 19.8% year-to-date as of the close of trading on Thursday.

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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, impressive record of earnings per share growth and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 7.4%. Since the same quarter one year prior, revenues rose by 40.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving 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.
  • 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 77.2% when compared to the same quarter one year prior, rising from $4.86 million to $8.61 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Media industry and the overall market on the basis of return on equity, IMAX CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • IMAX CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, IMAX CORP reported lower earnings of $0.56 versus $0.63 in the prior year. This year, the market expects an improvement in earnings ($1.08 versus $0.56).

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