Technical analysis is a securities market discipline from which investment decisions are based upon. The other market discipline is fundamental analysis. Technical analysis attempts to forecast future price movements based upon past price and volume movements. The idea is to find patterns within the past movements, and use those patterns to predict what will happen to the price in the future. These patterns have been incorporated into models, from which day-to-day decisions are made.
Whether the lofty expectations pan out or not, believe it or not, there is more than one investment opportunity you can take advantage of to make money on the success of The Hunger Games series and other major Hollywood blockbusters.
The company behind the production of The Hunger Games is Lions Gate Entertainment Corp. (NYSE/LGF), which is already up over 100% from its 52-week low and could head higher if the film sets new records, meaning this production company may be an investment opportunity. In addition to films, Lions Gate also produces 28 television shows over 20 networks.
Chart courtesy of www.StockCharts.com
Fundamentally, Lions Gate has delivered decent results, beating the Thomson Financial consensus earnings-per-share (EPS) estimate in each of the past four quarters, making it a possible investment opportunity. Revenues are estimated to grow 6.4% to $2.93 billion in fiscal 2015 ending in March. Fiscal earnings are estimated to rise 50% to $1.54 per diluted share in fiscal 2015. While the best gains are behind the stock for the time, longer-term, I see Lions Gate as a good investment opportunity.
A second investment opportunity on the success of The Hunger Games series and other blockbusters is IMAX Corporation (NYSE/IMAX). IMAX offers venues in which you can see the film on a specialized 12,000-watt power-packed screen that could be as high as 98 feet. In general, every major blockbuster film is shown on IMAX screens around the world…. Read More
Have you noticed the cost of flying has become more expensive as the demand for travel rises in the airline sector? Rates have clearly been ratcheting higher. Not by much, but enough to drive up profits in what has been the high-flying airlines sector.
But this boost in market demand is not confined to America’s borders; rather, there has been an overall pick-up in global travel. Rising wealth in China, India, Asia, and Latin America combined has driven up the demand for airline travel and the associated services, such as hotels and restaurants.
The profit picture has turned upward. Airlines around the world are buying more planes. We are seeing a sort of renaissance in the airline sector, which is estimated to report revenues of $708 billion and profits of $16.4 billion in 2014, according to the International Air Transport Association (IATA). (Source: Frary, M., “Airlines to make $16.4 billion in 2014, says IATA,” September 24, 2013, Public Sector Travel web site, last accessed November 14, 2013.)
The IATA estimates 3.12 billion travelers will ride the air waves this year, representing the first time this figure has been in excess of three billion.
And with the price of oil and jet fuel stabilizing, we could see an expansion in margins for the airline sector.
The evidence of the strength in the airline sector is reflected in the chart below of the Dow Jones U.S. Airlines Index. Note the strong upside moves since the emergence of a bullish golden cross (as indicated by the oval surrounding the moving averages) at the beginning of this year. Also notice the strong relative … Read More
Imagine letting a losing trade run, and before you even realize it, the position is down 20%, 30%, or more. Your $10.00 stock declined 30% to $7.00; you decide to hold the position, hoping for a rebound, but deep down you know the stock would need to rally more than 40% just for you to break even. Clearly, it’s not easy when a stock falls to greater depths.
But that’s why you should take the opportunity to dump losers when the stock market rallies, as is the case at this time. Avoiding a loss is just as good as making profits.
As many of you know, I believe the stock market is vulnerable to some selling and a stock market correction, based on my technical analysis of the charts. The S&P 500 is fighting resistance to advance higher, and the Dow Jones Industrial Average, while setting anther record-high on Monday, continues to show the potential of a stock market correction of at least six percent.
Think about how the stock market has moved to these levels. The easy money policy pushed by the Federal Reserve has been a key driving force behind this four-year run-up. But now, with the Fed expected to begin tapering in December or early 2014, the focus will shift to the economy and corporate revenue growth—which aren’t so stellar. In fact, in both cases, they’re flat.
Even the surge in the initial public offering (IPO) market is a red flag in my view. When I see an IPO double on its first day, it reminds me of the euphoria that I witnessed in late 1999, … Read More
This is an entirely free service. No credit card required.
We hate spam as much as you do.