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IMAX Corporation

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IMAX has recently inked multiple deals to expand its global presence. The latest deal was inked with Cineplex with the objective of expanding further in Canada. The company's efforts to expand into China is a further positive. IMAX recently inked a sales agreement with Shanghai Bestar Cinemas Management Co. for seven new IMAX theatres across Tier Two and Tier Three cities in China. The company's decision to announce a new buyback program worth up to $200 million is also impressive. However, the company has delivered a below-par box office performance over the last few months. In fact, shares of IMAX have underperformed its industry on a year-to-date basis, due to soft box office revenues. Additionally, the disappointing Memorial Day weekend turnout has hurt the stock. Also, the substantial presence outside the U.S. exposes IMAX to foreign currency exchange rate risks.

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