Hot Stuff

[madtony]

take it to the max

Shares of Imax (IMAX) have lost some of the tremendous bounce they enjoyed on Friday on rumors the company is a takeout target, perhaps for Sony (SNE) or Disney (DIS). But at $28.11 this morning, the stock is still up about 5% from Thursday’s close.

I reported on Friday that Disney is not interested in buying Imax, according to a source close to the company. This morning, Piper Jaffray media analyst James Marsh appeared on CNBC to discuss the stock. Marsh is still bullish on Imax, with an Overweight rating, mainly on his belief the company will continue to roll out new screens internationally. “We’re not big believers in the take-out story,” said Marsh. “Their partners on the exhibition side and the studio side would prefer” they remain independent, Marsh argued.

Imax is not a “mass market” phenomenon, said Marsh, with perhaps 400 to 500 screens in the U.S., tops, and 1,200 globally.

http://blogs.barrons.com/techtraderdaily/2011/01/03/imax-not-a-takeout-but-a-buy-says-piper/?mod=yahoobarrons