RealD Shares Popped: What You Need to Know (RLD)

RealD Shares Popped: What You Need to Know

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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 3-D cinema technologist RealD (NYSE: RLD ) came through in high definition today, jumping as high as 11% on twitchy but not terribly high-volume trading.

So what: Analyst firm Morgan Joseph Triartisan just opened coverage on RealD with a buy rating and a $28 price target, sending shares northward in morning action. The rating rests on RealD's dominant global market share in 3-D cinema systems.

Now what: Digging deeper, analyst David Kestenbaum noted that RealD covering system installation costs and then recouping that cost through a cut of ticket sales is a "win-win-win" for the company, theaters, and studios. Let me just point out that the same model should sound familiar to investors in fellow cinema technology mavens: Big-screen expert IMAX (Nasdaq: IMAX ) runs a portion of its installs this way while digital projectionist and content distributor Cinedigm Digital Cinema (Nasdaq: CIDM ) does most of its business like that. Out of this threesome, RealD is my least-favorite option simply because 3-D tech appears to be a fading fad and the other two aren't.

Interested in more info on RealD? Add it to your watchlist.

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Fool contributor Anders Bylund owns shares of Cinedigm, but he holds no other position in any company mentioned. Click here to see his holdings and a short bio. 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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