Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) 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 Corporation 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 $21.1 million.
- IMAX has traded 1.2 million shares today.
- IMAX traded in a range 219.5% of the normal price range with a price range of $1.58.
- IMAX traded above its daily resistance level (quality: 22 days, meaning that the stock is crossing a resistance level set by the last 22 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 47.0. Currently there are 7 analysts that rate Imax Corporation a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Imax Corporation has been 582,100 shares per day over the past 30 days. Imax has a market cap of $2.0 billion and is part of the services sector and media industry. The stock has a beta of 2.02 and a short float of 29.4% with 23.16 days to cover. Shares are up 29.6% year to date as of the close of trading on Friday.
rates Imax Corporation as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 0.8%. Since the same quarter one year prior, revenues rose by 17.2%. 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 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- 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. In comparison to the other companies in the Media industry and the overall market, IMAX CORP's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- IMAX CORP has improved earnings per share by 6.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, IMAX CORP increased its bottom line by earning $0.61 versus $0.22 in the prior year.
- The net income growth from the same quarter one year ago has exceeded that of the Media industry average, but is less than that of the S&P 500. The net income increased by 7.1% when compared to the same quarter one year prior, going from $11.03 million to $11.82 million.
- You can view the full Imax Corporation Ratings Report.