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Non-Tech : IMAX 3D-the wave of the future -- Ignore unavailable to you. Want to Upgrade?

To: John Liu who wrote (143)	10/13/2000 8:32:17 AM
From: Buckey	Read Replies (1) \| Respond to of 170

Hoping for a bounce - early indications are yes but premarket and open can be tricky Globe says smart investors buy Imax Imax Corp IMX Shares issued 29,808,888 Oct 12 close $6.55 Fri 13 Oct 2000 In the News The Globe and Mail reports in its Friday, Oct. 13, edition that as panicky Imax investors clamber for the exits, smart investors are sneaking in to enjoy the show. The Globe's Vox column says there is no question that Imax is facing serious problems. At the moment, it is abundantly clear that no one wants to buy the company, despite its efforts to be acquired. At Thursday's closing price of $6.55 Imax is trading at book value -- implying that the business itself is worthless. However, despite its third quarter loss warning, Imax will make a profit this year. It will take a few quarter for business to improve, but it will, at which point Imax may look attractive to a potential buyer. It is, after all, a logical piece in the convergence puzzle. Finally, there is the issue of Imax's Digital Projection subsidiary. The unit is one of the front-runners in digital projectors, and one of only three firms licensed to use DLP Cinema, the leading technology in the field. Digital's revenue is up 26 per cent since Imax bought it a year ago and accounted for a fifth of sales in the last quarter. As a stand-alone, fast-growing, $45-million-a-year company in a sexy industry, Digital should have some value, says The Globe. (c) Copyright 2000 Canjex Publishing Ltd. stockwatch.com Globe says Imax clobbered on warning Imax Corp IMX Shares issued 29,808,888 Oct 12 close $6.55 Fri 13 Oct 2000 In the News The Globe and Mail reports in its Friday, Oct. 13, edition that Imax plummeted $15.25 to $6.55 on the Toronto Stock Exchange Thursday after an unexpected profit warning spooked investors. The Globe's Keith Damsell writes that six weeks ago Imax traded in the $40 range. An unnamed New York fund manager says: "This company was blaming short sellers a few weeks ago and now they say they're going to miss earnings. I don't know what to believe. It's not a pretty picture." Imax warned Wednesday that its profit for the fiscal year would be about half of what analysts had forecast. The company stresses that it is on a solid financial footing, but it refuses to disclose its current cash position. Imax says it is impossible to predict how the earnings shortfall and the troubled United States film market will affect the sale of the company. A perceived shortage of information prompted at least two brokerages to issue downgrades Thursday. Prudential Securities cut its 18-month target price to $9 (U.S.) from $37. BMO Nesbitt Burns cuts its 12-month target price to $11.50 (Canadian) from $30. (c) Copyright 2000 Canjex Publishing Ltd. stockwatch.com