IMAX Corporation (NYSE:IMAX)

CAPS Rating: 5 out of 5

An entertainment technology company specializing in digital and film based motion picture technologies, whose activities are the design, manufacture, sale and lease of theater systems based on proprietary & patented technology for large-format theaters.


Player Avatar KamsterJas (< 20) Submitted: 7/18/2010 12:03:11 PM : Underperform Start Price: $12.90 IMAX Score: -38.52

Don't get me wrong here--I am extremely bullish on the future of 3-D IMAX as a Viagra to the long-suffered cinema industry; yet despite the recent strong blockbuster releases, signs have indicated that this is perhaps not the best time to own IMAX shares.1. Chart is pointing downward, I do not want to catch a falling knife.2. The Directors have been unloading since March for a total of 12% stake of the company, well although insider selling usually doesn't mean much, such a fire-sale gets me thinking about the management team unloading while the stock is still sizzling.3. A P/B of 10 and an almost non-existent levered Free Cash flow is simply not that promising.I believe IMAX IS the future, but it's too hyped up for the moment. It takes time for Cinemas to realize that the tide has turned and turn to IMAX, it takes time for movie makers to solely consider the IMAX production, and it certainly takes time for the stock to go back to its fair valuation.Disclosure: Have been selling IMAX out-of-money naked puts.

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Member Avatar ssl222 (< 20) Submitted: 8/2/2010 5:44:03 PM
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I bet you got destroyed on those out-of-money NAKED puts. Wrong way to put technical analysis to use. I actually used it to buy up shares at 12.80.

Member Avatar KamsterJas (< 20) Submitted: 8/5/2010 11:14:34 AM
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I also sell out-of-money naked puts in the expectation to buy the stock cheaper--I'd love to own IMAX at say 12 or 13.
Congrats on getting IMAX @ 12.80; I doubt if it'll ever reach that point in the next 6 months or so if the general market remains bullish.

Member Avatar BBRAF (< 20) Submitted: 9/26/2010 8:18:30 AM
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Member Avatar Gonzhouse (24.36) Submitted: 9/23/2013 3:47:24 PM
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IMAX's future is NOT 3-D; it's the ability to deliver a premium experience at a premium price. 3-D will fade away (as it has always done in every decade since 1960) and people will continue to flock to IMAX for the IMAX Experience they can't get at home or in the local cinema (which is likely bankrupt anyway). Hollywood knows this and that is why every major blockbuster opens up first on IMAX. And that is why IMAX continue to grow overseas, particularly in China, which has 90 cities with population > 1 mil and are rapidly buying IMAX screens under joint ventures.

Typical IMAX screen revenue: 3% of the screens and 12% of the gross.

Unless you want to argue that Hollywood blockbuster's time has come and gone, IMAX is an afforadable luxury that has a future.

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