What Does MACD Show Here? Lions Gate Entertainment Corp. (LGF) and Polycom Inc (PLCM)
New York, NY – GDP INSIDER – 04/20/2014.
This article discusses two companies: Lions Gate Entertainment Corp. (USA) (NYSE:LGF) and Polycom Inc (NASDAQ:PLCM)
Lions Gate Entertainment Corp. (USA) (NYSE:LGF) faced a ban in Russia for its Child 44 movie. The shares are trading around the mid-point of the 52-week range of $24.80 – $35.75. The stock sold off by 1.85% on Friday on higher than average volume of 2 million shares versus the 1.35 million average. The stock may be oversold as indicated by the MACD. While it is not close to a crossover of the signal line, it has diverged somewhat meaningfully. The divergence is currently -0.29 which is a level that may be considered oversold. In addition, the RSI and MFI are at towards the bottom end of the normal range and close to levels that would also start to signal a reversal. The RSI is 36 and the MFI is currently 29. The technical indicators are all lending some credence that the stock can reverse and move higher.
Polycom Inc (NASDAQ:PLCM) shares sold off on Friday by 4.4% to $12.48. The provider of voice, video, and content sharing solutions could see a more sustained move downwards. The MACD crossed over the signal on Friday which raises some concern that it could continue to selloff. The stock also went below its EMA on Friday and does not have other technical barriers in our view. The company recently came under scrutiny, and its Board of Directors is under investigation for breaches in fiduciary duty. Earlier in month, the SEC announced that it was investigating the former CEO, Andrew Miller, for using $200,000 in personal perks that were not disclosed to investors. That said, investors should be aware that the company has had earnings surprises the past two quarters. It beat by an average of 30%, and it could repeat that performance. This could outweigh any technical based selloffs and act as a positive catalyst for the stock.
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