ACM.A , Astral Media Inc.

acm.a oct 2012

The stock today is down some 16%, to about $39, on the news last night that the CRTC would not approve the deal that would have had BCE effectively takeover this company. There were a lot of moving parts to this deal so it was not easy to forecast the future. In our opinion you should not even try if the EW patterns are so clear. We have a clear B wave up that basically also creates a double top. You should really not have owned this stock yesterday! and nor should you today. This , by the way, also applies to the disappointed parent to be BCE;

BCE, Inc

A similar A-B-C counter-trend rebound has developed over the past ten years or so. The implication is that the bear market for this stock is not yet complete.

The spike can be ignored as it resulted from Nortel at a time when that subsidiary had not yet been split off as a separate entity.