RealD Shares Plunged Again: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of RealD (NAS: RLD) took yet another beating in early trading and remain down more than 20% on reports that a long-anticipated deal to bring its 3-D technology to Samsung screens isn't happening after all.

So what: Third-quarter revenue also came up well short of estimates, overshadowing an otherwise impressive earnings beat. Why the focus on sales? Perhaps because it seems to confirm earlier reports that 3-D demand isn't what RealD and its backers had hoped for.

Now what: Sellers can be forgiven for getting frustrated. RealD's misfortune isn't necessarily the result of industrywide pressure on premium cinema experiences. Just last week, IMAX (NAS: IMAX) upped guidance on the number of new screens to be installed in the fourth quarter. RealD has yet to generate similar momentum. Do you believe it will? Would you buy shares at current prices? Please weigh in using the comments box below.

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At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Motley Fool newsletter serviceshave recommended buying shares of IMAX. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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