Intertainment Media Inc. in a sell off since April

Jun 24th, 2011 – Comment

At this point the best case scenario would be for the stock to build a base at these levels.

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Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.

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Hi Lou,

You do a great job. If you ever get a chance to comment on Intertainment Media (INT) I would appreciate it.

Your commentary is always so thorough.

Thank you

Hi Carl,

Intertainment Media Inc. ( INT TSXV) has  four operating divisions. is their language translation platform which has gotten some media attention due to live demonstrations they have produced with Gene Simmons and Paul Stanley of Kiss fame and Canadian NBA All Star Steve Nash. They also have itiBiti a private label social media platform designed for global brands, plus Ad Taffy a technology that creates an instant call to action for online advertisers.The fourth unit is  Magnum Printing which  provides fine printing services.

What is observable is that the volume on the stock has thinned out considerably over the last month. The average daily volume over the last three months has been 11.9 million shares. Over the last thirty days the volume has exceeded the average on only seven days and only twice in the last twenty three days. We must have volume if we expect a stock to move higher

The charts will provide some guidance on what might be in store for this ambitious micro cap.

The three year chart illustrates the excitement that came into the stock in 2011. Prior to this year the shares were essentially flat but interest in helped move the stock to $0.50 by the end of January. In early February the company reported an offer from a U.S. based private equity firm to take public as a separate company. The news sent the stock on a quick run to $1.00

The RSI and MACD both signalled that the stock was overbought at those levels and it subsequently pulled back to just below $0.50 by mid March. The shares then made another advance taking it to a spike high near $3.25. in mid April. Once again the momentum indicators signalled that the stock was overbought and selling pressure came into the market taking it to its current level of $0.65.

The six month chart provides a closeup of  the action in INT since February. At this point the best case scenario would be for the stock to build a base at these levels.Currently there are no signals suggesting  that the stock will move higher If it breaks below these levels there is support at $0.50.

INT provides another example of taking profits when they are available. A stock that runs from a low of $0.125 to $3.25 in less than five months has done some heavy lifting. The question that needs to be answered is can it move the bar again?

Make it a profitable day and Happy Capitalism!




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