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

RealD IPO: A Bet on 3D's Future

Regardless of the direction 3D technology will take in the long-term, RLD will benefit from the short-term shift in the movie industry. However, investors may not see an immediate impact to results, as RLD is expected to report bottom-line losses for several quarters as it struggles with the upfront costs associated with distributing and recycling its proprietary eyewear. Gross profit margins came in at 6.2% for fiscal 2010, but eventually economies of scale will allow revenue growth to outpace expenses.

It will work in RLD's favor that it maintains low debt levels and can reinvest two-thirds of the $75 million expected from the IPO proceeds into future expansion opportunities.

RLD may not appeal to investors that are focused purely on the fundamental strength of an IPO. Instead RLD offers strong growth potential for those willing to take a risk on a technology play.

A quick walk through your local Best Buy (BBY - Get Report) or a drive past the movie theater will offer a good gauge for RLD's future potential. It has positioned itself to be the "go-to" 3D technology developer, but consumers will have the final say as to how the 3D craze will develop.

A full report on this stock is available from in Millburn, N.J., is the oldest equity new issues research firm on the Street, with 20 years of experience. IPOfinacial projects the opening premiums of IPOs and secondaries before they price. Its research packages are available to individual investors and institutions alike.
3 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
BBY $32.08 0.00%
DIS $103.26 0.00%
JPM $63.20 0.00%
TSLA $240.76 0.00%
AAPL $93.74 0.00%


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