Why IMAX Is Poised to Pop in 2013

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, jumbo-movie-screen systems maker IMAX has earned a respected four-star ranking.

With that in mind, let's take a closer look at IMAX and see what CAPS investors are saying about the stock right now.

IMAX facts

Headquarters (founded)

Mississauga, Canada (1967)

Market Cap

$1.6 billion

Industry

Movies and entertainment

Trailing-12-Month Revenue

$270.7 million

Management

CEO Richard Gelfond (since 2009)

CFO Joseph Sparacio (since 2007)

Return on Equity (average, past 3 years)

44.5%

Cash/Debt

$29.5 million / $30.0 million

Competitors

AMC Entertainment

RealD

Regal Entertainment


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 93% of the 1,636 members who have rated IMAX believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star 3Fairfield, nicely summed up the IMAX bull case for our community:

I agree with [JP Morgan] analyst Townsend Buckles who expects 2012 strong earnings performance will continue through 2013 and 2014 as IMAX expands its global screen count and box office trends remain favorable from the company's emerging market exposure and focus on blockbuster movies.

I think, too, more American movie goers will choose to shell out higher prices for the 'luxury' IMAX movie experience in the year ahead as Hollywood focuses on more elaborate (IMAX friendly) film production (a la Skyfall) adding to the IMAX repertoire. ...

I look forward to a good year for IMAX and an increase in the stock price -- perhaps an increase to $30/share or beyond.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, IMAX may not be your top choice.

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The article Why IMAX Is Poised to Pop in 2013 originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Imax. The Motley Fool owns 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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