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Here???s Why Investors Should Retain IMAX in Their Portfolio
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IMAX Corporation (IMAX - Free Report) of late has been making constant efforts to expand its presence across the globe. To this end, the company has inked multiple deals with various companies. The company has signed a contract with Majid Al Futtaim Cinemas in March this year. This hybrid joint revenue share agreement between the companies aims at bringing three more IMAX theatres to the Middle East.
The company’s efforts to expand in China are impressive as well. IMAX has signed a deal with Shanghai Film Corporation and SFC-Bailian Cinema Management Co., Ltd. (SFC-Bailian) to launch three additional IMAX theatres in China. The agreement with Jiangsu Omnijoi Cinema, inked in April this year, is also in line with the film format’s attempt to enhance its Chinese foray.
In May 2017, IMAX entered into a hybrid joint revenue share agreement with Les Cinémas Gaumont Pathé for six additional cine-theatres. Recently, IMAX and AMC Theatres, a subsidiary of AMC Entertainment Holdings, Inc. (AMC - Free Report) , have announced the launch of an IMAX VR Centre in New York City.
To counter declining box-office revenues, IMAX is looking to drive its bottom line by cutting costs. To this end, the company has decided to lay off 14% of its employees. The move is expected to generate cost savings to the tune of $20 million on an annual basis.
The company’s shareholder friendly moves to boost investor confidence are also appreciative. It has announced a new buyback program worth $200 million. The program is anticipated to complete by Jun 30, 2020 and will replace another $200 million program, which had commenced in 2014. Through the existing program, the company is aiming to buy back excess shares worth 6.4 million.
In view of the above positives, we suggest investors to retain the IMAX stock for now.
Shares of Adidas and Black Diamond jumped over 23% and 20%, respectively, on a year-to-date basis.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
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Here???s Why Investors Should Retain IMAX in Their Portfolio
IMAX Corporation (IMAX - Free Report) of late has been making constant efforts to expand its presence across the globe. To this end, the company has inked multiple deals with various companies. The company has signed a contract with Majid Al Futtaim Cinemas in March this year. This hybrid joint revenue share agreement between the companies aims at bringing three more IMAX theatres to the Middle East.
The company’s efforts to expand in China are impressive as well. IMAX has signed a deal with Shanghai Film Corporation and SFC-Bailian Cinema Management Co., Ltd. (SFC-Bailian) to launch three additional IMAX theatres in China. The agreement with Jiangsu Omnijoi Cinema, inked in April this year, is also in line with the film format’s attempt to enhance its Chinese foray.
In May 2017, IMAX entered into a hybrid joint revenue share agreement with Les Cinémas Gaumont Pathé for six additional cine-theatres. Recently, IMAX and AMC Theatres, a subsidiary of AMC Entertainment Holdings, Inc. (AMC - Free Report) , have announced the launch of an IMAX VR Centre in New York City.
To counter declining box-office revenues, IMAX is looking to drive its bottom line by cutting costs. To this end, the company has decided to lay off 14% of its employees. The move is expected to generate cost savings to the tune of $20 million on an annual basis.
The company’s shareholder friendly moves to boost investor confidence are also appreciative. It has announced a new buyback program worth $200 million. The program is anticipated to complete by Jun 30, 2020 and will replace another $200 million program, which had commenced in 2014. Through the existing program, the company is aiming to buy back excess shares worth 6.4 million.
In view of the above positives, we suggest investors to retain the IMAX stock for now.
Imax Corporation Price and Consensus
Imax Corporation Price and Consensus | Imax Corporation Quote
Zacks Rank & Key Picks
IMAX currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader Consumer Discretionary sector are Adidas AG (ADDYY - Free Report) and Black Diamond, Inc. . Both sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Adidas and Black Diamond jumped over 23% and 20%, respectively, on a year-to-date basis.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Click here for Zacks' secret trade>>