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Expecting strong earnings from Imax

|Includes: Cinemark Holdings, Inc (CNK), IMAX

Imax's stock has sputtered lately vs. the market, as investors wonder/worry about 2010 expansion plans.  The line-up looks solid with more 3D films, but nothing that will compare to Avatar.  The company can use the success of Avatar to move negotiations along faster with film co. and movie chains.

CNK had a strong qrtr., and will creep into Imax's wheelhouse.  Imitation is the best form a flattery.   The lawsuits will decide if any infringement occurred.

I would buy on weakness if forward guidance is weak or below expectations.  The company is hinting at the chance to add more theaters in the U.S. which may dilute earnings in 2010, but drive growth higher!


I see the stock moving to $15 in the next 6 months.