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 technologist RealD
So what: RealD shares have been beaten up over the past several months, but Wold's call suggests that it's now just too cheap for investors, a larger company, or even its own management (through a go-private transaction) to pass up. In fact, Wold believes the stock is worth $19-$23 per share, representing a whopping premium of between 65% and 100% to yesterday's close.
Now what: I'd continue to be cautious about RealD. Fools know never to buy into a stock based purely on a buyout bet, and RealD's fundamentals remain just too shaky for a long-term commitment. Although Merriman believes that Mr. Market will eventually reward RealD investors with "a more realistic valuation multiple for the shares," top dog IMAX
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