This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Imax Interest Could Get a Sequel

Editor's note: This Stocks Under $10 alert was originally sent to subscribers Nov. 20 at 3:59 p.m. EST. It's being republished as a bonus for and readers.

A couple of twists in the plot have sent shares of Imax (IMAX - Get Report) tumbling over the past four months. Along with its stock price, the credibility of the company has been shattered. But several upcoming events could make this stock a speculative buy for risk-tolerant investors as more information unfolds about the company's legal problems.

Earlier this year, when shares were trading around $10, the giant-screen movie-system maker offered itself for sale. Initial interest came from entertainment titans Sony (SNE - Get Report) and Time Warner (TWX - Get Report) as analysts speculated that Imax shares were worth anywhere from $12 to $14.

But on Aug. 9, Imax announced that it had failed to find a buyer and was also being investigated by the Securities and Exchange Commission for the timing of revenue recognition. Shares plunged that day and then continued to fall over the next two weeks to $4.43, dropping more than 50% from their Aug. 8 high as a slew of shareholder lawsuits ensued.

Then on Nov. 9 -- just when investors thought that the worst-possible scenario was priced into the stock -- Imax reported a third-quarter loss of 28 cents a share, 27 cents worse than the analyst consensus estimate. Shares fell an additional 20% on the news, where they remain with the stock recently trading at $3.41. Even at this price, Imax shares are very risky, but several catalysts could make for a speculative buy down the road for investors who can handle the risk.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
IMAX $32.00 -1.69%
SNE $24.10 -0.66%
TWX $75.14 -2.10%
AAPL $93.74 -1.15%
FB $117.58 0.73%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs