Imax Immolated (IMAX)
Now I kind of wish that Imax hadn't told us they were shopping the company around.
In what was clearly a huge shock to the market, Imax announced today that none of the bidders were willing to pay a reasonable price to acquire the company (no mention of what that reasonable price would have been).
So the stock swooned by something like 30% after hours -- and I may even put in a very lowball bid for some shares in after hours trading if this keeps up.
Because while the corporate restructuring news was pretty bad ... the operational news was quite good. Despite a few stinker films earlier this year, Superman Returns was a big hit and they continue to sell plenty of theater installations both here and overseas. They beat on both earnings and revenue.
And at first glance, picking up these shares in the $6 range, which they haven't seen since 2004 (they were in the $8-10 range well before any takeovers were rumored), might be a possibility. At that price, it starts to look like a pretty nice little value-priced grower to me again -- especially when you take into account what might be a couple of significant Imax blockbusters next year in Spiderman 3 and Harry Potter 5 (or is it 4? I lose track).
We'll see ... there clearly were a lot of folks counting on a $13+ buyout bid, and from the looks of the after hours trading they are all desperately trying to sell. I would have been happy to sell at those levels, too, but I have no interest in selling at $6-7. Considering that this is a profitable company that's growing reasonably well on its own, albeit not as nicely as they would if they partnered with some deep pockets, a 30% haircut seems to me to be a significant overreaction.
In what was clearly a huge shock to the market, Imax announced today that none of the bidders were willing to pay a reasonable price to acquire the company (no mention of what that reasonable price would have been).
So the stock swooned by something like 30% after hours -- and I may even put in a very lowball bid for some shares in after hours trading if this keeps up.
Because while the corporate restructuring news was pretty bad ... the operational news was quite good. Despite a few stinker films earlier this year, Superman Returns was a big hit and they continue to sell plenty of theater installations both here and overseas. They beat on both earnings and revenue.
And at first glance, picking up these shares in the $6 range, which they haven't seen since 2004 (they were in the $8-10 range well before any takeovers were rumored), might be a possibility. At that price, it starts to look like a pretty nice little value-priced grower to me again -- especially when you take into account what might be a couple of significant Imax blockbusters next year in Spiderman 3 and Harry Potter 5 (or is it 4? I lose track).
We'll see ... there clearly were a lot of folks counting on a $13+ buyout bid, and from the looks of the after hours trading they are all desperately trying to sell. I would have been happy to sell at those levels, too, but I have no interest in selling at $6-7. Considering that this is a profitable company that's growing reasonably well on its own, albeit not as nicely as they would if they partnered with some deep pockets, a 30% haircut seems to me to be a significant overreaction.
Labels: IMAX
This article posted by One Guy @ 8/09/2006 04:32:00 PM 0 comments
Add to: del.icio.us *Furl *Google *Spurl *reddit *StumbleUpon *Yahoo MyWeb *
Add to: del.icio.us *Furl *Google *Spurl *reddit *StumbleUpon *Yahoo MyWeb *
