IMAX

My first stock pick is the IMAX Corporation. IMAX has recently risen over 30% in the past month alone. Why? The growing trend and increasing interest in 3D movie technology has moved IMAX to be at the forefront of entertainment industry. IMAX’s base theatre network has grown by 79 complexes since 2008 signalling the global intrigue of the 3D technology. From 2007 to 2008, IMAX experienced negative revenue growth, but with the emerging popularity of 3D, revenue jumped close to 70% in 2009. IMAX has struggled in the past 5 years due to problems growing revenue, but with the new rise in 3D technology, investors should expect the increase in revenues to drive growth for the company. Not only are revenues growing, but IMAX has doubled its profit margin in the last quarter since the beginning of 2009. If IMAX continues to outperform analyst sales forecasts, the company will be in great shape for a successful 2010. With expanding partnerships in France, Japan, and now Ukraine IMAX is set for global expansion and a takeover of the movie entertainment world.
Currently the stock price sits at 19.82%. I expect IMAX to hit $25 by summer’s end. Call me bullish, but I like IMAX.