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: IMAX (Nasdaq: IMAX ) shares popped nearly 11% in intraday trading today after the company rolled the credits on some dramatically impressive third-quarter results.
So what: IMAX could be viewed as a dangerous discretionary entertainment stock in the "new normal" economy, but judging by substantial increases in third-quarter profit and revenues, its business is picking up. Even better, IMAX signed contracts to establish itself in 100 more theaters, an extremely promising improvement over the third quarter last year, when it signed a mere 13 contracts.
Now what: Regardless of concerns about today's penny-pinching consumer, perhaps the mind-blowing escapism IMAX-enhanced movies provide is just what folks want these days. Such a substantial increase in contracts bodes well for IMAX. Investors have good reason to be excited about IMAX's quarter; impressive growth appears to be on the marquee.
Interested in more info on IMAX? Add it to your watchlist by clicking here.