|According to the Reuters news wire, shares of IMAX Corp. went for a roller-coaster ride on the last day of 2010, climbing on a report that Sony Corp. or Walt Disney might be interested in it, but plunging after IMAX poured cold water on the speculation.|
Not only that, the UK's Daily Mail newspaper reported in recent days that Sony may be readying a bid for the big-screen movie tech company at more than $40 per share. The newspaper also named Disney as a possible suitor.
IMAX shares jumped as much as 20% early on Friday but shed most of those gains after IMAX noted that it was "unaware of any corporate developments" that would account for the rise.
|FIGURE 1: IMAX, DAILY|
|Graphic provided by: OmniTrader.|
|Figure 1 shows how the share rose from $27.65 on December 31, 2010, to $32.31 on the Daily Mail report, and then promptly fell back to $27.65. Since then, the share price has gradually drifted down to find support at $26.57. Over that period, both the stochastic RSI cycle indicator and the ergodic oscillator, the two indicators on the chart, have both moved from overbought levels to oversold ones. The green triangles of both oscillators are suggesting buy signals, confirmed by the buys signal on the vote line.|
At present levels, I would be a buyer of IMAX.
|Address:||3256 West 24th Ave|
|Phone # for sales:||6042634214|
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