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

To: BAXTERBOO who wrote (36)	2/10/1998 11:25:00 AM
From: Neil Kalton	Read Replies (2) \| Respond to of 170

Earnings definitely look solid; right in line with $.24. The only confusing part for me was how with 20 theater signings in the 4Q did backlog only increase 2% quarter over quarter. Still, for all other intents and purposes 1997 appeared to be a stellar year: 1. Imax signed 60 theater contracts in 1997. This was a 100% increase over the 29 signed in 1996. In comparison, 1996 saw only a 21% increase in theater signings over 1995. 2. Backlog increased 33% year over year. This was the biggest percentage backlog increase for the period 1993-1997. IMO, a sign of accelerating growth. 3. Backlog figures may prove to be low as many of the current theaters counted in backlog are listed as IMAX 3-D SR with the potential that the many of these will be changed to IMAX 3-D GT orders instead (I'm presuming the GT systems are more expensive). 4. RideFilm doing well with 50% year over year growth and 18 more units in backlog. IMO, if past history is any indication of future results then IMAXF should have no problem hitting the $.94 estimates for 1998. The CEO even said that the visibility will be dramatically increased in 1998. As long as IMAXF can continue to maintain this level of growth it will continue to be viewed favorably by the Street and command a relatively high PE in the range of 30-40. From the reports and articles I've seen the potential is there for IMAXF to maintain this approximate level of growth for the next 3-5 years. If the Street remains confident they can do this then shares should move into the mid to upper thirties by year's end. -nk