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 amiableCDN (< 20) Submitted: 10/17/2013 7:49:05 AM : Outperform Start Price: $26.69 IMAX Score: -9.76

IMAX will outperform for two major reasons with two major risks.China is booming and IMAX has supplying the richest individual and company with theaters. As the Chinese middle class grows malls are being built at the rate of 3 per week and a theater is a near compulsory requirement. IMAX is on the verge of offering a large screen Laser system. This finally re-opens the market for true "Bigger is Better" IMAX offerings which all but disappeared as IMAX went smaller and cheaper attempting to grow out a larger networkThe risks? It is early in Laser. Delivery and scheduling are soft. Capabilities may not distinguish IMAX enough from competition and there is no sign of significant proprietary IP as applied to Laser.Executive performance and compensation. For the entire time IMAX has been a public company they have not delivered what they promised. Intentionally and illegally misled on what they were doing and what their business prospects were and pulled compensation and bonuses out, succeed or fail, at levels far out of proportion to the company or business.

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