Mike Arnold
Long only, small-cap, tech, growth at reasonable price

The IP Value At RealD Is The Real Deal

Shares of RealD (NYSE:RLD) ("RealD" or "the company") are currently trading at 52-week (and all-time) lows after a precipitous drop on fears that its growth story is cooling off. With a current market capitalization of $330 million, I think shares are cheap relative to the attractive, IP-based operating model under which RealD conducts its business. No one likes trying to catch a falling knife, but the sharp correction in price appears to have made for a compelling investment opportunity.

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The Business

RealD is a leading global licensor of patented visual 3D technologies, in applications that enable a premium 3D viewing experience in the cinemas and theaters. As such, RealD's operating model is dependent on a...

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