Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: JAMES BORECKI who wrote (67)	6/12/1998 2:21:00 PM
From: Neil Kalton	Read Replies (1) \| Respond to of 170

The combination of many factors seem to be presenting an excellent buying opportunity in shares of Imax. First, last quarters earnings were a disappointment; the first time in a long time that IMAXF has come in below analysts expectations. The stock price has been falling to reflect what many must believe to be a slowing growth rate. However, one quarter does not a trend make. As has been previously discussed the shortfall came not from Imax's core business (theaters, etc) but from film revenues instead. This was disappointing but if Imax is going to have problems I would rather it be in this area than in the actual theater production. Also, a decline in theater signings and production is a much more difficult trend to turn around than film revenues. I am of the opinion that last quarter's shortfall was somewhat of an aberration and that IMAXF will resume 30-35% earnings growth once they get their filmmaking sorted out. If the slower growth was due to a slowdown in theater signings, production, etc. I would be singing a much different tune. However, IMO Imax's future has never looked brighter. The third party, critically acclaimed Everest continues its amazing run amongst the nations Top 20 films building significant awareness for the IMAX brand name. The much hyped T-Rex is on the way and theater signings remain strong. It is also inevitable that at some point a big name director will make an IMAX film or a Star Trek short movie will be created for the IMAX screen. The terrible small-cap market environment has also served to exacerbate IMAX's fall. It must be frustrating for longs to see their shares fall 25% on a 12% earnings shortfall. However, in a favorable market IMAXF is a $35-40 stock in a years time. I would not be surprised to see IMAXF drop into the $19-21 range before it begins to rise again. At these prices I think IMAXF is an excellent investment. -nk