IMAX

Current Picks

IMAX @ $8.22 STOP loss is: $7.94 Profits @ $9.80
Catalyst: Theater installations have been going well. Last quater was a MISS and the stock took it in the chin. This creates a buying opportunity. The miss was related to the timing of theater installs (some were pushed out a few weeks) and nothing else. Sales of systems continues at a good pace. Media stocks have been punished. Marvel (MVL) missed horribly, Lion's Gate Films (LGF) also had a miss. Theater ticket sales have been slumping.

However, all these items do not apply to IMAX. Having a clearly superior experience at the movies, is making IMAX a winner. This is making theater chains that are suffering from a ticket downtrend to want to upgrade their facilities with IMAX equipment to allow for higher ticket pricing. The real short term catalyst for this stock is Harry Potter. It will be shown on IMAX starting on Nov 18. Last time when "Charlie and the Chocolate Factory" was shown at IMAX the successfull returns lead to a rally in the stock. Harry Potter should reproduce and be more of a catalyst that Charlie. Another film that is upcoming "The Polar Express" (rereleased for this holiday season) will also likely produce great results.

Price Risks:
$0.30 down, $1.60+ Upside. Risk / Reward is very favorable.