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 TMFInnovator (42.90) Submitted: 6/24/2013 11:52:47 AM : Outperform Start Price: $23.69 IMAX Score: -5.56

- Great brand recognition, which is redefining the way that movies are watched. This allows theaters to charge higher prices for IMAX showings.
- Those higher prices are shared with IMAX through Revenue-sharing agreements. They signed deals with 25 new theaters in Q1 alone, with a large part of their expansion coming internationally (China, Indonesia). This business model provides much higher margins to IMAX than simply installing the equipment.
- Backlog of 283 theater systems. There is still plenty of demand for the IMAX experience.

I'm taking advantage of the pullback (down 10% in the past month) to put a thumbs-up for IMAX.

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