So I finally saw Avatar yesterday. I saw the movie in 3-D at my local movie theater on Imax. The movie was playing at 3:00pm.
First I own shares of Imax in my real life portfolio.
We arrived at the theater early as the shows had been selling out. By three the theater was over three quarters full.
Now this is not the place for a review of the movie but rather a takeaway of how Avatar is impacting Imax stock.
The theater I went to sold out every showing for the first week and many showtimes the next weeks after. I was suprised to see strength like this in the middle of a weekday. The crowd was mostly adults and older people (excuse my language to any readers offended by older).
The movie in 3-D was amazing. I have not seen many movies in 3-D but this by far was the best I had seen. James Cameron has truly changed how viewers will see movies in the future.
I am so excited about the future of 3-D movies on Imax for the rest of this year. Alice in Wonderland, Toy Story, How to Train Your Dragon, and Shrek 4. These movies will likely not be as advanced as Avatar was but will bring significant revenue for Imax. Avatar will stay on screens until March 5th, when Alice in Wonderland opens in wide release.
When Imax reports earnings from this quarter, I believe they are going to well surpass analysts estimates. The company trades at over $13 right now. I still believe the stock is headed to $20 or likely to be bought out.
The significant amount of bos office revenue is likely to compete several cents in earnings per share for News Corp (NWS).