1:30pm (EST)

I have mentioned Imax (IMAX, $6.86, down $0.12) here in the blog numerous times and most recently on April 23rd. Back then, the stock was at $6.28 and hit a high of $7.19 yesterday before fading. The company will report earnings on Thursday and here is what we can expect.

The company is expected to post a loss of 8 cents a share compared to a loss of 25 cents a year ago. I have written more extensively on Imax in the article section of OptionsMentoring.com and here is my point.

Although I don’t actively buy stocks, there are some that offer tremendous trading opportunities. If you have been following a stock for three years you should know how it trades. Imax trades between $4 and $8 and it is a great way to add income to your portfolio on trading stocks you know.

On March 8th when I mentioned the stock, it was at $4.10. If you had bought a 1,000 shares of Imax at the time, you could have sold it yesterday for nearly a $3,000 profit in just two months. If you had bought 1,000 shares on April 23rd, you could have made a “G”.

Now, the key from here is to not buy the stock today but to wait and see how it reacts. If we get a dip below $6 we will have to see what the company says before deciding to get in.

For those of you who don’t have a lot of money to trade options (yet) you can always start off by building a portfolio of good, quality stocks that are “cheap” but with serious homerun potential. Imax has that potential.

If Imax ever turns a profit, this stock will easily trade in the double-digits.

Rick Rouse