Imris Inc. a case of great tech but a bad stock

Oct 24th, 2014 – 1 Comment

The research conducted indicates that IM has been selling off for the better part of three years when it traded for just over $8.00.


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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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IM LOGO

 

Lou,

Love your comments. Can you give me some help with Imris Inc. I bought high as the company was touting growth and innovations(they still are getting recognized for this). They then moved to the US- stock value has tanked- just holding with hopes of a white knight buy out that will lessen my losses here.
Finding a direction on this stock has been difficult…any sage advice for me??

John

 

Hey John,

Thanks for the assignment. Imris Inc. (IM TSX) has developed medical imaging solutions to assist in surgeries. Their Visius Surgical Theatres are multi suite systems that make use of magnetic resonance imaging, and computerized tomography. The company has placed its systems in sixty one medical facilities and are used in the treatment of cardiovascular, neurosurgical, spinal, and cerebrovascular conditions.

The research conducted indicates that IM has been selling off for the better part of three years when it traded for just over $8.00.  At some point you have to accept what the tape is telling you and stop the losses from consuming your hard earned capital

A scout of the charts will help identify how best to proceed with this investment.

 

IM

The three-year chart is a textbook example of a stock that makes grown men cry. Except for the spike in early 2014 the stock has constantly met resistance along the downtrend line and the 50 and 200-day moving averages. In addition you can’t ignore the death cross that formed in April of 2013 providing an early indicator that investors could expect continued selling pressure to follow.

 

 

 

 

 

IM2

The six-month chart is no oil painting either. Note the resistance along the 50-day moving average in September and the sell signals that were generated by the MACD and the RSI at the same time. Another factor you should be aware of is that trading volume over the last thirty days is only 25,781 shares per day. For a stock trading below $1.00 it doesn’t represent a lot of value.

The best possible outcome would be to discuss the advantage of a tax loss sale with your accountant. The idea that a white knight will appear and slay your dragon, although tempting, is not likely. What incentive would an acquirer have to be a hero and bail out your losses?

Don’t take it too hard. We all have the same kind of wall paper with the theme of ” Why didn’t I sell it earlier? “.

 

Make it a profitable day and happy capitalism!

 

 

 

 

 

 

Categories: Medical Imaging
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