RealD Shares Popped: What You Need to Know

Editor's note: A RealD article from an earlier date was inadvertently published in place of today's article. The corrected version follows. 

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: After suffering staggering loss after staggering loss, RealD (NYSE: RLD  ) investors finally got a rally when Oscar-winning director Martin Scorsese told Deadline Hollywood he would prefer to shoot all future films in 3-D. Endorsements don't come much bigger.

So what: RealD has taken a beating this year as Hollywood blockbusters have failed to produce nearly as much in 3-D sales as expected. New data says that may be changing. Scorsese's newest, a 3-D children 's epic called Hugo, beat weekend expectations.

Now what: RealD's 13% pop became an 11% gain by the closing bell, a nice change for a stock that's down more than 60% year to date. Do you believe the rally can continue from here? Or are more down days ahead? Please weigh in using the comments box below.

Interested in more information about RealD? Add it to your watchlist.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

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  • Report this Comment On November 29, 2011, at 11:57 AM, bbflyer wrote:

    3D is still in the early days of development and it will continue to get better and better. Scorsese's Hugo shows the potential for the format and with new technological advances in production and faster frame rates it will just get better and better.

    RealD is trading at about 5x TRAILING 12 month EBIDTA ($105MM) which is dirt cheap for a company that has strong growth. Its technology is on over 18,000 screens worldwide in over 50 countries. Pretty amazing feat considering that the company is less than 8 years old....

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