Opinion on  Imax Corp (IMAX)     Sector: Services  >  Industry: Motion Pictures
Bullish on IMAX ...

I think this one is going up long term. People don't go to the movies anymore because there is little to differentiate the quality from a home theater. Add in screaming kids, cell phones and missing the show while you go to the bathroom and you can see why home theaters are taking off.

Imax does offer a big differentiation however... This is an experience that I cannot get at home. If movie theaters have a future, it will be by investing in technologies like Imax and digital distribution. I got in a little higher than here, but I have no fear of real losses.

Ha... I blew this one...



That being said, no new idea works like an old idea. Imax had ditched the sad plan of selling out. Set some money on this short term in preparation for the following:



Last quarter they did not close a single deal. Mostly, I think, because they were focused on selling the business and not doing business. They will have a lot of hanging deals that get closed this quarter, this will make it look like a major improvement in their business. (not really)



Management will want to show the world that they are now "serious" about the prospects of the company going forward. I see some recovery that scares the hell out of the shorts and causes a real long opportunity.



I think this is good short term up to 6 or maybe even 7. I will probably dump my shares when the recovery hits those levels. I don't trust management going forward past the next couple months.



But... I'll still see the best movies at the Imax theaters. ;-)



-Don