Why RealD Shares Popped Today

Is RealD's jump meaningful? Or just another movement?

Jun 5, 2014 at 6:10PM

What: Shares of RealD (NYSE:RLD) jumped 10% early Thursday, then settled to close up around 8% after the 3-D movie visual technology specialist released better-than-expected fiscal fourth-quarter results.

So what:  Quarterly revenue came in at $40.6 million, which translated to a net loss of $5 million, or $0.10 per share. That may sound bad, but analysts were looking for a wider net loss of $0.23 per share on sales of just $33.66 million.

Notably, RealD's China license revenue grew 81% year over year in 2014, and doubled as a percentage of overall sales. RealD also grew adjusted earnings before interest, taxes, depreciation, and amortization by 12% over last year, and generated free cash flow of $13 million in fiscal 2014.

Now what: RealD still has plenty of work to do in increasing the penetration of high-quality 3-D films, and the stock still doesn't look particularly cheap trading around 60 times next year's estimated earnings. But that's also not entirely uncommon for a company on the cusp of sustained profitability, and investors are rightly encouraged that RealD is still moving in the right direction. As a result, I won't be surprised if RealD continues rewarding patient, long-term shareholders going forward, although I'm not personally anxious to buy shares today,.

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Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't 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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