Big-screen projection pioneer IMAX
Mall theaters are a prime target now that movie studios like Time Warner's
One reason to see an IMAX film, other than the large screen, is the crisp, clear picture. That advantage may fade with the advent of digital projectors, as chips from Texas Instruments
IMAX is clearly trying to establish a beachhead with Hollywood products. The next Harry Potter will be released in IMAX format, as will sequels to Sony
These movies should set box office records for IMAX, but what about the stock? Yes, IMAX has an opportunity with mall-based systems and some outstanding films in the pipeline. At the same time, new technologies and digital projectors promise to bring a much-improved movie experience to the traditional theater.
Put it together, and it might be best to take a wait-and-see approach on IMAX. At 20 times 2004 earnings this one looks fairly priced -- at least until longer-term profitability can be established.
Time Warner and Marvel are both David Gardner top picks in David and Tom Gardner's Motley Fool Stock Advisor . W.D. Crotty loves movies and is no stranger to IMAX. W.D. owns Disney and frequents the Motley Fool discussion boards. For a 30-day free trial to the discussion boards, click here .