IMAX Shares Popped: What You Need to Know

Updated

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 oversized theater company IMAX (NYS: IMAX) jumped 10% today after it was upgraded by an analyst.

So what: Stifel Nicolaus analysts upgraded the company today ahead of a very important holiday season for the company. Mission: Impossible -- Ghost Protocol and The Adventures of Tintin are built to be successes at IMAX and should drive the company into 2012.

Now what: After a rough 2011 for IMAX films, a film slate lined with blockbuster movies could get IMAX back on the market's good side starting with Mission: Impossible. I pointed out the potential opportunity last week noting that a growing network of theaters and solid lineup of films could poise the stock for a boost. I don't like buying when an analyst upgrades a stock, but I am in full agreement that IMAX has lots of long-term opportunities and the stock is looking like a great value right now.

Interested in more info on IMAX? Add it to your watchlist byclicking here.

At the time thisarticle was published Fool contributor Travis Hoium owns shares of IMAX. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Motley Fool newsletter services have recommended buying shares of IMAX. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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