IMAX/Willsons – Absolutely I like them. They are in a long-term expansion but people play them like a slot machine depending on each weekend's box office revenue. The best thing to do is pretend they are a normal widget-making company and focus on their actual earnings, which are on a path to fly higher and that's not even including the China deal they just signed.
| Year End 31st Dec | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | TTM | 2016E | 2017E | CAGR / Avg | |
| $m | 248.6 | 236.6 | 284.3 | 287.9 | 290.5 | 373.8 | 388.3 | 383.4 | 421.5 | +8.5% | |
| $m | 50.6 | 28.1 | 58.4 | 65.1 | 57.9 | 87.8 | 80.3 | +11.6% | |||
| $m | 101.2 | 15.3 | 41.3 | 44.1 | 39.7 | 55.8 | 48.4 | 66.3 | 94.0 | -11.2% | |
| $ | 1.52 | 0.23 | 0.61 | 0.65 | 0.56 | 0.78 | 0.69 | -12.6% | |||
| $ | 1.52 | 0.27 | 0.63 | 0.66 | 0.66 | 0.83 | 0.74 | 0.97 | 1.32 | -11.5% | |
| % | +1,372 | -82.7 | +138.3 | +4.9 | -0.9 | +26.3 | -5.2 | +16.9 | +37.5 | ||
| x | 36.7 | 41.3 | 31.4 | 22.8 | |||||||
| x | 2.17 | 2.45 | 0.84 | 1.70 | |||||||
| Profitability | |||||||||||
The market cap is $2Bn and they are dropping $66M to the bottom line so 30 p/e but they are building new theaters like crazy, especially in China so consider that R&D
We like IMAX as a long-term play and it went out of the LTP when we cashed in our last one so, in the LTP, let's sell 10 March $28 puts for $1.90 ($1,900) for a net $26.10 entry if assigned ($26,100) and, if so, we'll then establish a long-term play or, if not, we'll keep the $1,900 for 6 months' "work".
If you want to be more aggressive, you can add the $28 ($4.60)/33 ($2) bull call spread at $2.60 ($2,600) and then you are netting into the $5,000 spread for net $700 with $4,300 (614%) upside potential at $33 and you are already $2,000 in the money!
