Possible takeover

3D movies. IMAX experience is growing.

growing, in demand, successful

growth

Buy - Price 6.57 on May 18
by Merriman Curhan Ford

Demand for IMAX movie releases continues to strengthen. Through this past weekend, the IMAX version of "Star Trek" has generated an estimated $17.4 million, or about 11.8%, of the movie's total domestic box office. The key point is that this penetration of the movie's overall domestic box office represents an improvement from the 10.7% generated over the opening weekend -- demonstrating, in our opinion, strengthening demand for the IMAX version as 1) consumers faced sold-out shows in the opening weekend/week and 2) word of mouth of the IMAX version compared with the traditional 35mm version grew since its release... With two IMAX movie releases remaining in the second quarter, we estimate IMAX could generate between $68 and $74 million in total IMAX box office during the quarter, versus our modeled assumption of $58.9 million... We also project IMAX has no need for any additional capital to complete its installation plans before turning free-cash-flow-positive around mid-fiscal 2010. Applying a seven to eight-times multiple to our FY10 Ebitda [earnings before interest, taxes, depreciation and amortization] estimate of $70.4 million yields appreciation potential for IMAX shares to $7.75-$9.50. Market cap: $313 million.

Steady growth over time, with increasing orders, popularity improving, new deals with Russia and China.

Buy - Price 4.78 on April 7
by Morgan Joseph

The Monsters vs. Aliens movie had the largest 3-D opening -- at $5.1 million, 9% of total box on less than 2% of screens....While we are reducing our near-term estimates, we continue to believe the company is on track to expand [earnings before interest, taxes, depreciation and amortization] toward $100 million, and thus, we maintain our Buy rating. In addition to ongoing market expansion, IMAX's heavy artillery (Star Trek, May 8; Transformers, June 24; Harry Potter, July 17) of movie titles remains intact, with expected favorable sales and market exposure likely to follow. Market cap: $209 million.

Future

I think their spending in the last quarter will lead to greater growth and I believe their product is the next generation in theater entertainment. They are beat down after falling short of market estimates so I bought in more as of March 09.

Buy - Price 6.84 on June 20
by Morgan Joseph

The National Association of Theater Owners [reports that in five of] the last seven recession years, movie theaters' gross box office...increased; during/following the 2001 U.S. recession, U.S. GBO revenues increased 9% and 14% y/o/y in 2001 and '02, respectively, with average attendance up 4% and 11%.... Led by Wall-E and Wanted, studio revenues for the top 12 movies were $179.2 million -- up roughly 22% from the same weekend last year. Our 9 target is based [on] a 10 times multiple of enterprise value to our 2009 E-Ebitda. Some risk factors: balance sheet is highly levered. Market cap: $296 million.

bad management

Management botched the sale and the stock can't recover

I like movies

No demand here.