Avatar Drives IMAX Stock
Last Monday, IMAX (IMAX) announced their first $100 million box office quarter for the 4th quarter, driven by $54 million from Avatar. In the past week, IMAX outfitted theaters did about 25% of Avatar’s domestic box office with just 2% of the movie’s screens.
The company still hasn’t proven it can make much money, with only $1 million in earnings through the first 9 months of 2009 – though the fourth quarter obviously looks to be strong. That for a stock with an $850 million market cap.
Perhaps they are turning a corner. But the stock might already reflect that.
Disclosure: Top Gun has no position in IMAX shares.