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sell and button (pupunkkop/Getty Images/iStockphoto)
sell and button (pupunkkop/Getty Images/iStockphoto)

Schizas’ Mailbag

If you’re still holding Intertainment stock, stop it Add to ...

Hello Lou,

Thanks for all the good work you do. I have a few seemingly worthless shares in Intertainment Media. Seems like a no go. Anything good come to mind?

Greetings for a good day,

Jack

Hey Jack,

Thanks for your kind words, they are very much appreciated.

This will be the first time I conduct an analysis on Intertainment Media Inc. The company describes itself as technology incubator with investments in distinct solutions for brands and consumers. They have two operating units: Ortsbo, which enables real time global communications for clients, and Magnum, which provides print and design solutions.

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The rub with this stock is that it hasn’t found the solution to a declining stock price. An examination of the charts will help identify if I can find anything good to report.

The three-year chart provides a textbook example of a long term value destroying investment. The double top in February of 2012 when the shares were trading for $0.80 was the first sign that the good times were coming to an end. The death cross in May of the same year when the shares were near $0.50 was another sign that investors had passed near the gates of hell and could hear the baying of Cerberus. The chart outlines an established downtrend, resistance along the moving averages, and lower highs and lower lows. In concert these do not encourage a buy or a hold. The patterns are screaming sell with the objective of preserving capital!

The six-month chart is no better from a recovery point of view. Make note of the resistance along the moving averages, lower highs and lower lows, and extremely thin value of trading. Over the last three months the stock has traded an average of 308,360 shares a day. A stock trading below $0.06 for most of the time tells you that investors have broken faith with the stock.

You asked for any good that I could find and sadly I would say that the best case scenario is a tax loss sale near the end of the year.

Make it a profitable day and happy capitalism!

Have your own question for Lou? Send it in to lou@happycapitalism.com.

 
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