What's going on with IMAX & RLD stock & why are both still dropping?
Some traders are wondering why IMAX and REALD ( RLD ) stocks are down so much & not going up with the box office success of both Transformers and Harry Potter and Deathly Hallows Part 2
As of July 17th, 2011 Transformers – Dark of the Moon has made over $302Million in Domestic Box Office & over $762Milllion Worldwide
And As of July 17th, 2011 – Harry Potter had made over $169Mill in Domestic Box Office and over $481Million Worlwide
There are still some more movies that should help #'s into the end of 2011 full list here for remainder of 2011 at Box Office Mojo
So what is going on ?
1) there was talk at last RLD earnings that an analyst asked if 3D is a fad – as we can see the box office has been pretty good & a few blow out #'s
2) IMAX officer ( Richard L Gelfond) sold a bunch of IMAX shares in June 8th, 28th, 29th 30th & July 13th , 14th and 15th
look to be option exercised positions from $6.86 & $4.85 ( sold at $35.07, 30.83, $31.64 , $32.19, 28.25 & $28.64 ( He's sold some before even before stock continue higher like in Dec 2009 for $12.80 per share & in 2010 – like July when stock was $12-$13+ range so he's not picking tops. I would say these are just consistant/automatic sales – Click Here is a full list of his sales
as of July 15th he still owned 211,700 shares
I don't think this was the main factor so what else is there?
3) One concern I had recently was the volume spike in sales since beginning of June .
4) This article in Forbes sheds a bit more light & makes some sense : "Eric Wold, of Merriman Capital, said that investors were looking for the films to generate 60% to 70% of their revenue from 3-D screens …