If we look at popular investing sites, they are mostly ga ga (whatever that means) about IMAX (Thomson Reuters symbol IMAX.K).
Afterall, Star Wars new movie blasted box office records. And IMAX cinemas are running full house for days.
IMAX closed on Friday (18th Dec) at 37.83.
As per Yahoo Finance search on IMAX during the weekend, analysts’ mean target price is 44.13 – that is a more than 16% higher than current price. Pretty good upside prediction you may say.
Another widely popular investment newpaper in US, IBD, declared (at www.investors.com):
“The Force Is Strong With These 5 IBD 50 Stocks” and included IMAX in that list.
While many investors – looking at such “meaningful” analyst recommendation (they are assumed to be experts – right?) and IBD pronouncements – and the fact that IMAX theaters are running full house with Star Wars; would be buyin IMAX right now.
That is not how Superior Profit investors look at investing. They tend to believe themselves. Their eyes. And make investment decision based on what is actually happening with the stock rather than the crowd at IMAX cinemas.
And as we may see from the At A Glance easy to read and unambiguous chart from CUE System, the dreaded Dark Side may be taking over IMAX. At least in the short term – probably enough to make a profitable Short Swing trade.
Are we certain that IMAX will fall hard? No. Not like that.
If we knew, we would load up on the Short side with IMAX. Superior Profit investors do not do that. They always manage risk. Taking (almost) equal size risk in all investments. And make sure that the risk is small – as it seems to be in this case from CUE charts analysis.
What would you do with IMAX? Go Long? Go Short? Stand aside?
Whichever side you choose – choose wisely. Trust everyone if you must – but trust yourself / your eyes (and senses even if you close your eyes) more. Keep the Light Saber handy nearby. We are here to win.
May the force be with you.