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 movie technology specialist RealD
So what: While the company's first-quarter results managed to blow out Wall Street estimates, management's forecast of declining license gross margins for fiscal 2012 has Mr. Market concerned about RealD's future profitability. And with recent releases Kung Fu Panda 2 and Pirates of the Caribbean generating lackluster 3-D numbers, analysts are generally questioning the format's long-term appeal.
Now what: I'd continue to be cautious about buying into RealD. IMAX
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