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George Lucas and Steven Spielberg tell an audience at USC that the film industry is heading...

George Lucas and Steven Spielberg tell an audience at USC that the film industry is heading toward giant upheaval as distribution in the industry evolves. The iconic pair see the theater industry heading toward an increase in premium seating in large-sized theaters (think IMAX) for big-budget films and note that cable networks which have an easier time turning a profit (think HBO (TWX)) will be a logical channel to release more films.
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Comments (3)
  • SoldHigh
    , contributor
    Comments (1013) | Send Message
     
    All overpriced - many will simply wait for the movie to come out on Netflix or similar
    13 Jun 2013, 01:56 PM Reply Like
  • gomgk
    , contributor
    Comments (19) | Send Message
     
    So why is IMAX tanking today and analyst sentiment so Bearish?
    Has it just run up too far? Any ideas? I'm wondering when to jump in...
    13 Jun 2013, 02:13 PM Reply Like
  • stochastictrader
    , contributor
    Comments (4) | Send Message
     
    @gomgk, analyst consensus price is $29. So what I think is happening is that institutional managers are getting out of IMAX since there is only a 2 dollar growth left (8%). And the market is offering 14%. I'm long Imax myself. Though I can't tell you if this is a good time to get in on Imax (I'm contemplating buying more at the moment) I can tell you for sure that Imax movies this quarter made about $2.587b excluding Man of Steel, which debuts tomorrow. That is higher than Q3 2012, which had a 0.22 EPS. So I expect EPS for Q2 2013 to be higher than 0.22, though will it be enough to cause a rally? Not sure, especially with all the uncertainty regarding the Fed's QE. Furthermore the stock is overpriced, so maybe investors are realising this now. You have about 4 weeks before the Q2 report is published, so I would pay attention to how well Man of Steel does in theatres, to help you decide.
    13 Jun 2013, 03:52 PM Reply Like
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