When your corporate motto is "think big," it's only natural for investors to expect big things from you. Such is the case with IMAX (NASDAQ:IMAX).
Will it live up to expectations? Well, as multiplex operators have suffered through three straight years of dwindling movie audiences, IMAX has grown with its bigger-than-life projections. So let's not write off celluloid just because more folks have really sweet plasma and LCD screens at home.
No, there is life even in this aging sector. Between companies such as Access Integrated Technologies (AMEX:AIX), which is installing digital projectors, and Hollywood Media (NASDAQ:HOLL), which is making inroads with its 26% stake in MovieTickets.com, there are plenty of public players that won't let Hollywood ride off into the sunset without a fight. Or at least a really neat closing song.
So what about IMAX? The stock was a Rule Breakers newsletter recommendation in 2005. Will it save the day with its remastered releases of brand-new films? Or will it fail, with theater operators walking away from the gargantuan format? Not all Fools agree. W.D. Crotty thinks the company is a blockbuster in the making, while Chuck Saletta thinks the prospects are fading to black.
Does IMAX belong in your portfolio? That's what this week's Duel is all about.
Duel on!
