The stock price action of Intertainment Media Inc. (CVE:INT) (PINK:ITMTF) could be described as ‘calm before the storm’ – the trading volume has diminished along with price volatility as traders await the third quarter operating results.
The company will hold an annual general and special meeting of shareholders on November 29, 2011 so it can be expected that the financial statements will get published beforehand.
INT stock price action nearly stopped as traders are holding their breath in anticipation. Intertainment is running a controversial Ortsbo product which currently doesn’t generate revenues but has a substantial and sustained growth in user base.
This potential has put INT stock value way above the fundamentally viable worth and it is causing a lot of volatility on the market. Intertainment stock price is experiencing large scale up and down swings and tend to exhibit fast price spikes after prolonged gradual declines.
In the current situation the publication of new financial statements might lead to yet another selloff with a promise of prominent share price rally afterwards. However, this, otherwise logical speculation, could be hindered by the very specific situation the stock is in. INT share price finds support at a 50 day moving average and it could be hard for bears to poke through it.
In any case, nobody is expecting a magical improvement over Intertainment’s financials, but seeing a steady condition would likely preserve their bloated share price. The company did raise $44.5 million from stock and debt issuing over the past two quarters, so their general financial situation is somewhat satisfying, but the quarterly losses rose significantly as well, which raises concern.
