IMAX is Fun to Watch

Imax Corp. (IMAX) is the next previously undiscussed holding in the virtual Million Dollar Portfolio. I've always enjoyed going to Imax movies, and it somehow seems like this once strange medium is becoming more and more mainstream. I would imagine that all financially-minded individuals already know the various positive indicators in the near future for Imax.

The most notable trends would include the fact that there is less and less of a draw of blockbuster crowds recently in movie theaters, and more people staying home to watch DVD's on sophisticated home entertainment sound systems. Renting a DVD can now be almost as good as going to a movie theater, at a fraction of the price. This is a very scary trend for theater-owners. Not so for Imax. It would be incredibly difficult to replicate the experience of a movie-screen the size of two blue whales in your living room!

Fundamentally, the company doesn't exactly fit into my traditional categories and screens for value investing. However, once in a while I will tend to make an exception, particularly with regard to small-cap, lower volume companies. Even so, the averaged trailing & forward price/earnings ratio comes out to 21.22, which isn't really that high. The company has a market cap currently of 411.79M. In addition, the company has a net profit margin of 11.5%, and income growth of 62%.

Imax Indicators

CNN Money - You can't spell IMAX without M&A - ' Whether or not IMAX is successful in trying to get multiple parties bidding for it remains to be seen. But Kelman is fairly confident that IMAX's days as an independent company are probably numbered. "I'm not sure if there will be a bidding war," Kelman said. "But I think a deal is likely to happen. I don't think the company would have made it public had they not thought that they already had some offers in place." '

Rotten Tomatoes - Superman to Make His "Return" via 3-D IMAX! - "Releasing select sequences of 'Superman Returns' in IMAX 3D marks a groundbreaking moment in movies," said Dan Fellman, President of Domestic Distribution at Warner Bros. Pictures. "This film is going to give fans an opportunity to be immersed in a major live-action motion picture like never before."