Intertainment Media Inc. a candidate for a tax loss sale

May 6th, 2016 – 1 Comment

Merciless decline


About the Author

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.


Read the author's full profile.


Further Research

Read more about Information Technology.


 

INT LOGO

Hello Lou,

Thanks for all the good work you do. I listen to your business reports on AM 640. I invested in a company called Intertainment media and was interested in your thoughts.

Thanks,
S

 

Hey S,

Thanks for listening to AM640, your kind words, and this assignment. This will be the third time since 2011 that I inspect the case for Intertainment Media Inc. (INT TSXV). The last time was on June 2, 2014 when the shares were trading for $0.04. Jack was disappointed in his investment in the stock and wanted to know if anything good came to mind.

Unfortunately the research had all the hallmarks of a stock in the grips of an asset shredding decline. The shares fell from its highs near $1.00 in February of 2012 and formed an established downtrend line that saw the shares crushed to $0.04 by June of 2014.

The conclusion was that the best case scenario was to think about a tax loss sale before the end of the calendar year.

Another examination of the charts for INT will inform my thoughts.

 

INT

The three-year chart tells the tale of a stock that has tried to breakout of its slump including a rollback of the shares in 2015. Unfortunately that hasn’t done much good.

When I see a trading pattern like this it tells me that the stock doesn’t trade everyday and when it does the average daily volume over the last three months has been 75,618 shares. The average daily value of trading over the last three months is $2,268.54. What I get from this is that there aren’t many investors interested in this stock.

I took a look at the bull boards and it seems that the yak is more about trash talking between a few participants mostly focused on insulting one another. In addition there not much to work with in the news stream from this issuer.

 

INT2

The six-month chart highlights the low and no volume days and the continued erosion of shareholder value. Once again the conclusion that I come to is that INT should be considered for a tax loss sale.

Next time I will audit the charts for Whitbread PLC (WTB LN) on task from Mike.

Make it a profitable day and happy capitalism!

Content © Relentless Economics - Charts courtesy Stockcharts.com - Employees Entrance - Optimization Media