The sentiment for the stock does not seem encouraging..it is unable to muster any strength. While my longterm opinion does not change the short term technical/sentiment outlook is rather dismal. Thoe who sold can always buy in again.
It is almost like markets stopped trusting the mgmt utterances and Imax's prospects for future.
I am in a holding pattern. Imax will be taken over wish we could guess when.
I agree with everything you said above. For the first time since I started following Imax in 2002, Imax has its choice of any movie that is released and they also have all the theater deals they can handle. There is, however, residual mistrust of the company. Gelfond, a brilliant man, does not inspire confidence, so Imax is a favorite of the short seller and has been for many years. People may be a little slow to catch on but they are not stupid. Imax will get where it is going price wise, which is much higher than currently.
To give my opinion about both of your posts: This is why I believe the long overdue announcement of a reasonable dividend by the company (which I posted about yesterday) would not only reward the shareholders, but I think it would improve investor confidence in the company. I think a more stable as well as higher stock price could be the result. The announcement of a dividend might also help to solve the problem of this stock being such a favorite of the short sellers. I've held this stock (buy & hold) for longer than I care to admit because of the fact that it has for me, been dead money. Dead money in a company that I always believed has a great concept and a product that should have justified a much higher stock price long ago. It's long past the time for management to share the wealth!
There is good enough reason for the mistrust IMO due to a big contradiction between the words uttered by the mgmt leeches in public and what they actually do.
To understand the impact of the insider selling.
For the year 2013 , the compensation related expenses will be $13 million compared to the $13 - $15 million R&D expenditure. Imax is a technology focused company with big emphasis on R&D yet the allocation for R&D is not much above the stock based compensation which never ends.
Before any Mgmt apologist says that the insider selling doers not matter, there is another metric to compare against - Net income. The eps for the current FY is expected by 85 cents. So , the total income is :
Total income = (annual eps * total shares outstanding) = 0.85* 66.87 M = $56.8 Million
The gluttonous mgmt is socking away almost 23% of the net income and it was worse in the past. The 25% is apart from the salaries , perks , benefits and what not.
It is hard to trust a mgmt which bleeds the company while spouting platitudes about it.
I am waiting for 2014 & 2015 when there will be enough left in imax coffers despite mgmt's gluttony.