1-Star Stocks Poised to Plunge: RealD?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, 3-D movie technologist RealD (NYS: RLD) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at RealD's business and see what CAPS investors are saying about the stock right now.
RealDfacts
Headquarters (Founded) | Beverly Hills, Calif. (2003) |
Market Cap | $481.6 million |
Industry | Movie production |
Trailing-12-Month Revenue | $263.8 million |
Management | Co-Founder/Chairman/CEO Michael Lewis |
Trailing-12-Month Return on Equity | 10.6% |
Cash/Debt | $32.5 million / $25.0 million |
Competitors | Dolby Labs |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 33% of the 83 members who have rated RealD in believe the stock will underperform the S&P 500 going forward.
Earlier this week, one of those Fools, All-Star kkconway, explains why RealD's upside is limited:
Most 3-D content is pedestrian and poor (i.e., they are still poking objects out of the picture plane, into the face of the audience; I've seen that in 50s movies, thanks anyway. There will never be enough Avatars to make a market for this gimmick. "Hugo" was a great movie I saw in 2D in December. I read that the 3-D version had issues, so I felt justified to go to a closer showing in dinosaur mode. If the inimitable Martin Scorcese can't make 3-D work, the industry is doomed.
What do you think about RealD, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!
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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of NVIDIA, Dolby Laboratories, and IMAX. Motley Fool newsletter services have also recommended writing puts in NVIDIA. 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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