Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

IMAX Corp. (NASDAQ: IMAX), which specializes in the development of high-end theater projection and sound systems, is the favorite speculative idea for 2007 from says Nathan Slaughter.

The editor of Half-Priced Stocks notes, "IMAX has been slammed by a 'perfect storm.' Within the span of a few months this year, the company has been battered by investor backlash due to a failed buyout, an informal SEC probe, a class-action lawsuit and, in November, sub-par quarterly results.

"While there is always a danger associated with 'trying to catch a falling knife,' the rewards significantly outweigh the risks at this point. Until fairly recently, IMAX movies were primarily a novelty found at museums, planetariums, and marine centers. But two major technological breakthroughs are bringing the IMAX experience to mainstream America.

"The first is its MPX technology, which allows commercial multiplex owners a cost-effective way to retrofit traditional 35-mm screens and convert them into IMAX theaters. Through the first nine months of 2006, IMAX inked 25 new deals. Further, its digital re-mastering technology that converts traditional 35-mm films into rich 70-mm IMAX format has led to a series of partnerships with major Hollywood studios like Disney and Time Warner, which are increasingly choosing to release blockbuster hits in IMAX theaters.