IMAX Corporation (NYSE:IMAX)

I expect a upward trend with catalysts from both MI: Ghost Protocol and Nolan's ever growing obsession that will be evident in Dark Knight Rises.

We are looking at a consensus estimate of 80 cents a share for full year 2012. This is roughly a 220% increase in earnings over 2011 or 25 cents. I'm not in love with the negative cash flow from operations, but the operating income looks solid and they have no long term debt. I'll say IMAX earns .75 cents for 2012 and I'll give them a forward P/E of 40 times or a PEG of roughly 0.18 as opposed to the obscene PEG of 0.08 it trades at now. Im going to say the reason for this steep PEG discount is the true long term growth rate is probably closer to 50% when you look at the past 3 years of gross operating profit. If we substitute gross operating profit for earnings in the PEG equation, my PEG is more reasonable 40/50 or .80. Either way my target is $30.00 or 52% above the current price of $19.69 in the next 12 to 18 months.

From what I can see, IMAX is building new theaters in China, meaning that there is rising demand for their products, and that's going to bring in income. Also, we see that there are several movies coming out that are going to help IMAX out quite a bit. Let's not stop there, though, folks, I've also seen several reports that IMAX is overpriced. Then when you hear that, you think, is he crazy? I say that I'm not crazy. What these three things paired together mean is not falling into a bottomless pit, it's going up an endless escalator. Have fun with it people.

People will go to movies especially if times are bad to forget....and then they still go when times are great. Hollywood had a 12 billion dollar summer 2011. Think that was random?

Movies have had a big summer! Movies do well IMAX does well!

It's not just 3d people. It's enhanced 2d too.

Good entry point, in times of trouble people will pay for entertainment, if only to escape reality for a moment.

extremely cheap at this price

When I lived in Beijing for the past three years, I witnessed firsthand that anything that won over the growing swarm (and that's not hyperbole, they literally SWARM) of hip, Western-emulating, and above all, RICH, young Chinese adults would see soaring revenues. IMAX fits the bill, and the rapid expansion overseas should translate into rising earnings.

Imax had a bad 1st 1/4 of the year, predictably, due to a really awful slate of movies. However the 2nd quarter will be much much better. All the top movie still come to Imax, and people still want to see the big movies on the big screen. This is a $30 stock.

HOLY BARGAIN, BATMAN! The Dark Knight Rises coming soon. Amazing Spiderman coming soon. The upcoming movies will gross more than the stinkers of this past summer, and with a majority of the new theaters already built and operating around the world, those profits will be seen on the upcoming balance sheets. The current stock price is the result of panic selling amidst a number of unrelated economic headlines. Also, a worthy investment on the chance that those takeover rumors come to fruition. Conservatively expect stock price to be in the mid 20's by winter 2011.

hit way too hard by recent quarterly results

good growth prospects.need to manage their debt or reduce it by using cash flow to finance growth of theater count.

getting back in around $20. Bought some shares in RL for about 16, sold them for 27. Would buy more if the price dropped to 15.

People are willing to pay the premium for certain movies. More theaters and theater deals equals more revenues. IMAX has more revenue streams than just movie ticket sales. Additionally, I don't think the market realizes just how much cash IMAX stands to make from global sales (big emphasis on China).

Love the company/business model but this baby is over priced. Consider that half of their net income was the result of a tax loss carryforward and then consider that their net income figure also didnt include taxes. Factor in those two things and the trailing P/E is more like 80 than 26. Then consider that they lost money this past quarter. I'm keeping an eye on this b/c I do like their business model but I sold this stock with my real money months ago when they released their 10K. Stocks trading at that high an earnings model rarely live up to the high expectations.

If they continue to grab the market share they did in 2010 then by the time they reach their current goal they sill be bringing in $2 billion in box office receipts and keeping about $400 million of it. Add on the new systems they would be selling (this includes theaters that have to upgrade) and maintenance on those theaters, and the fee they charge studios to convert fils to IMAX. Just based on this recurring revenue by the time IMAX ramps up to their current goal their recurring revenue excluding new installations would be in the $500 million range. Sounds nice for a $2 billion dollar company.

These leaves out many other factors that could push IMAX to open more theaters in more markets and take a bigger cut of the box office.

1. IMAX's own projections for theaters continues to grow.
2. Gross margins on recurring revenue are 13% higher than their TOTAL margins now (including their current recurring revenue)
3. IMAX"s second largest market (China) is expected to more than triple total box office receipts by 2015
4. Out of the 15 theaters that brought in over $100,000 for the opening of Pirates of the Caribbean 8 were on IMAX screens.
5. IMAX box office from Digital Remastered pictures has more than doubled the past 2 years.

These signs point to more screens and more market share. I am in for the long run.

Opening new theaters oveseas. Great product.

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