Dark Knight, the Batman movie starring Heath Ledger, did boffo box office: $158.3 million, according to Defamer. But this blockbuster will not just benefit Warner Brothers and DC Comics, which share parent Time Warner Inc. (NYSE: TWX) with BloggingStocks. There are at least six companies that will benefit from Dark Knight's success. According to Seeking Alpha, these companies include:
Time Warner -- through its Warner Brothers and DC Comics subsidiaries are profiting most directly.
Comcast Corporation (NYSE: CMCSA) partnered with Warner Bros. to offer "behind-the-scenes footage, trailers, and mini movies on demand"
Verizon Communications, Inc. (NYSE: VZ) and Nokia Corporation (NYSE: NOK) collaborated in creating the Nokia6205 The Dark Knight Edition. Seeking Alpha reports that "This batphone targets superfans, with bat wallpaper, voice tones, screensavers, and the film's trailer pre-loaded."
There will be five superheroes competing for the attention of weekend moviegoers come Friday. There's Marvel Entertainment Inc. (NYSE: MVL)'s duo Iron Man and The Incredible Hulk, Sony Corporation (NYSE: SNE)'s Hancock, General Electric Corporation (NYSE: GE)'s Hellboy (distributed by GE's Universal), and Time Warner, Inc (NYSE: TWX)'s Dark Knight. So, who's going to be the ultimate crime fighter?
I'll tell you which one prevails: Time Warner and its new Batman film, The Dark Knight, has the weekend all locked up. This is set in stone. The Hulk and Iron Man are pretty much done, Hellboy isn't a powerful enough brand name,and Hancock didn't deliver the big numbers I thought it was capable of during its debut weekend (since then, however, the movie has held up well, I have to admit). But you can bet that Dark Knight hits $100 million this weekend. Can you feel the buzz surrounding this blockbuster in the wings? I can. Several reviews I've read were full of cinematic worship for this new entry in the franchise, with special praise reserved for the late Heath Ledger and his portrayal of the fiendish nightmare known as The Joker. There's a decent marketing campaign behind the project, including promotion of the availability of IMAX (NASDAQ: IMAX) screenings. If there ever seemed a movie fit for Imax, this is it. Yeah, Dark Knight can't lose, it can only win big.
Of course, what about Time Warner's stock? It could certainly use a superhero right now, as it has been hovering in recent times not above Gotham City (although that would probably be treacherous enough) but above 52-week-low City. I can't say that a big opening weekend definitely won't move the stock a little just due to the excitement factor, but I wouldn't buy the company ahead of the film (I also wouldn't gamble with IMAX either). Time Warner simply is too large to be affected significantly by one movie. If you consider Time Warner at all, it would be for fundamentals and valuation (I think the company is cheap here, although with this market, I'd rather get it cheaper). Enjoy the movie first, think about the stock later...
Disclosure: I own GE and Marvel; positions can change at any time.
IMAX (NASDAQ: IMAX) really missed Wall Street's expectations. In its latest earnings release, issued on Monday, the company said that its net loss per share doubled to $0.25 for the first quarter compared to the 2007 quarter when the net loss was $0.12 per share. Revenues were $23.5 million, a 12% decline.
While that performance is bad enough in itself, it was also below expectations with the bottom line missing by $0.11. Yikes! Revenues were likewise a disappointment. Even with all the snazzy content from studios such as Time Warner (NYSE: TWX), Viacom (NYSE: VIA), Disney (NYSE: DIS) and DreamWorks Animation (NYSE: DWA), IMAX is having a tough time getting its stock out of the single digits. Management is hoping that a stronger slate for the rest of the year will have a positive impact.
Maybe it will, maybe it won't. IMAX is a stock I have no interest in buying. The company sports a negative book value at the moment, and the stock's past performance has been pretty terrible. I have to concede, however, that on a shorter-term period, the stock has been strong -- in fact, it is not too far from a 52-week high.
As one can imagine, many are speculating that IMAX has a great future ahead of it as the company transitions to digital platforms (this article at USATODAY.com provides an excellent summary of the bull argument, as well as issues IMAX has had with financing). Also, I'm sure many are speculating about a potential sale of the company at some point.
Hey, I'm not going to necessarily rain on the long-term thesis for IMAX, but I have to be honest and say that I'd have to see a breakout from here and some better numbers next quarter to even think about starting a position.
Disclosure: I own shares in Disney; positions can change at any time.
Both large-screen motion picture systems company Imax Corp. (NASDAQ: IMAX) and health food distributor Smart Balance Inc. (NASDAQ: SMBL) reported today widening losses in the fourth-quarter.
For the period that ended December 31, Toronto-based Imax reported a loss of $10.1 million, or 25 cents per share, compared with a loss of $9.2 million, or 23 cents per share, in the previous year. Excluding one-time charges, Imax's quarterly loss was 21 cents per share. Analysts surveyed by Thomson Financial had expected a loss of 13 cents per share. Fourth quarter revenue declined 12% to $32.3 million, largely on lower equipment and product sales.
Imax reported an annual loss of $26.9 million, or 67 cents per share, compared with a loss of $16.8 million, or 42 cents per share, a year earlier. Analysts had expected a loss of 42 cents per share. Full-year revenue dropped 9% to $115.8 million.
Smart-Balance's quarterly loss totaled $48.5 million, or $1.41 per share, from $11.1 million, or 77 cents per share in the prior year. Revenue grew 26% from the year-ago quarter to $50.7 million, helped by higher prices and higher demand for Smart Balance spreads, peanut butter, cooking oil, and mayonnaise.
For the year, the company's net loss grew to $101.7 million, or $4.12 per share, from $13.8 million, or 96 cents per share, a year ago. Analysts had expected a loss of 80 cents per share. Revenue grew 28% to $175.6 million.
While Imax fell only about 1.8% to close at $6.62, Smart Balance fell more than 15% to close at $5.65, after hitting a new 52-week low of $5.48 in afternoon trading.
MOST NOTEWORTHY: General Motors, Acuity Brands, Post Properties, Manpower and IMAX Corp were today's noteworthy upgrades:
UBS upgraded General Motors (NYSE: GM) to Buy from Sell citing a potential $3B in cost savings from the "transformational contract" with the UAW.
Acuity Brands (NYSE: AYI) was upgraded to Outperform from Neutral at Baird based on valuation and management's ability to execute.
Post Properties (NYSE: PPS) was raised to Neutral from Sell at Merrill Lynch following its Q3 report and guidance.
Citigroup upgraded shares of Manpower (NYSE: MAN) to Buy from Hold as they like the company's business model and balance sheet.
Soleil upgraded shares of IMAX Corporation (NASDAQ: IMAX) to Buy from hold with digital IMAX set to launch in Q208, to reflect the attractive economics of the company's new joint venture model.
OTHER UPGRADES:
Verizon Communications (NYSE: VZ) was upgraded to Market Perform from Underperform at Raymond James.
JMP Securities upgraded Actuate Corporation (NASDAQ: ACTU) to Outperform from Market Perform.
Citigroup upgraded FormFactor (FORM) to Buy from Hold and added shares to their Global Tech Conviction List.
However, Ontario is more than just Canada's financial center. Its abundance of resources and location on Great Lakes have made Ontario a manufacturing powerhouse, including steel production and automobile manufacturing in southern Ontario, and mining and forestry in the north. Toronto is Canada's film and media center, as well as an important tourism destination. Niagara Falls is one of world's most popular tourist destinations. Other Ontario companies the Motley Fool liked include Research in Motion Ltd. (NASDAQ: RIMM), Nortel Networks Corp. (NYSE: NT), and IMAX Corp. (NASDAQ: IMAX).
Research in Motion (RIM), Canada's largest public company, is well know for its BlackBerry smart phones, but it also provides software development tools and produces radio-based modems used in portable devices. The consensus recommendation of analysts surveyed by Thomson Financial is to buy RIM, and has been since April. RIM met analysts' earnings per share estimate when it reported second quarter FY2008 earnings in early October, and Wall Street expects EPS of 62 cents in the third quarter, double the 31 cents actual from a year ago. RIM has a five-year EPS growth rate of 73.5%, easily beating the S&P 500 and the technology sector average. RIM's share price has been climbing since a share split in August, to reach a 52-week high of $128.36 on Tuesday; it opened today at $124.75. Also this week, RIM announced plans to sell the BlackBerry in China, and introduced Facebook for the BlackBerry as well. For more on Microsoft Corp.'s (NASDAQ: MSFT) challenge to RIM and other RIM-related news, see Bloggingstocks' RIM coverage.
This summer was a very profitable one for box offices nationwide, with four movies grossing over $300M, and at least another nine grossing over $100M -- signaling in a big way the resurgence of the movie industry, which had been struggling for the last few years.
The four big $300M+ winners of the summer were Sony Corporation (ADR) (NYSE: SNE) 'sSpider-Man 3, which grossed $336M in the U.S., Viacom, Inc (NYSE: VIA)'s Paramount's Shrek the Third, which grossed $320M, Transformers, also from Paramount, which grossed $311M, and The Walt Disney Company (NYSE: DIS)'s Pirates of the Caribbean: At World's End, which grossed $308M.
Three of the four were third installments of well established big-budget franchises, so their success is hardly shocking, but the Transformers success clearly marks the start of a new blockbuster franchise (the release date of the sequel has been announced -- June 26, 2009). The robot-action extravaganza, which was directed by Michael Bay, was definitely a surprise, as I remarked in my summer movie preview that Transformers "has flop written all over it... there cannot possibly be enough substance in a story about alien robots that transform into vehicles to make this a hit with the general public." I was wrong -- very wrong. The movie killed at the box office, grossing over $330M on a $150M budget, and prompting a re-release on IMAX, which opened last week.
MOST NOTEWORTHY: Countrywide Financial (CFC), Toll Brothers (TOL), United Parcel Service (UPS) and OSI Pharma (OSIP) were today's noteworthy upgrades:
Both Friedman Billings and Wachovia upgraded Countrywide Financial (NYSE: CFC) to Market Perform from Underperform following the $2 billion investment by the Bank of America (BAC).
JMP Securities upgraded Toll Brothers (NYSE: TOL) to Market Perform from Underperform and believes the worst news on housing is reflected and that fears over a disappearing jumbo loan market are overblown.
Matrix upgraded United Parcel Service (NYSE: UPS) to Buy from Hold to reflect strong demand from overseas shipping.
Wachovia raised OSI Pharma (NASDAQ: OSIP) to Market Perform from Underperform on valuation...
OTHER UPGRADES:
UBS raised Joy Global (NASDAQ: JOYG) to Buy from Neutral.
China Netcom (NYSE: CN) was raised to Neutral from Sell at UBS.
Roth Capital upgraded IMAX Corp (NASDAQ: IMAX) to Buy from Hold.
WedBush raised InfoSpace (NASDAQ: INSP) to Buy from Hold.
MOST NOTEWORTHY: Anheuser-Busch (BUD), Imax Corp (IMAX), Amgen (AMGN), Fifth Third Bancorp (FITB) and TiVO (TIVO) were today's noteworthy upgrades:
Citigroup upgraded shares of Anheuser-Busch (NYSE: BUD) to Hold from Sell as they see a 70% chance of an alliance between Anheuser-Busch and InBev in the next two years; they believe such a merger would create a market leader.
Merriman upgraded IMAX Corp (NASDAQ: IMAX) to Buy from Neutral after IMAX removed its overhang by completing SEC filings, while fundamentals have remained strong.
Citigroup upgraded Amgen (NASDAQ: AMGN) to Hold from Sell to reflect the potential for CMS to roll back proposed reimbursement cuts in oncology, an improving risk/reward profile and the potential for positive phase 3 denosumab data by year-end.
Kaufman upgraded TiVO (NASDAQ: TIVO) to Buy from Sell as indicators of the change in its business model suggest a positive transaction. The firm feels the the EchoStar (DISH) litigation provides an attractive risk/reward potential, creating an attractive entry point...
OTHER UPGRADES:
Aflac (NYSE: AFL) was upgraded at Lehman to Overweight from Underweight.
The Wall Street Journal (subscription required) reported that Clear Channel Communications Inc (NYSE: CCU) has said "no" to a new offer from Thomas H. Lee Partners and Bain Capital Partners to buy the company, saying shareholders had no interest.
The Financial Times (subscription required) reported that One Equity, a private equity firm affiliated with JPMorgan Chase & Co (NYSE: JPM), has approached EMI Group (OTC: EMIPY) about a takeover which could value the British music company at more than $6B, according to sources.
The New York Post has learned that Westwood One Inc (NYSE: WON) has hired UBS to help identify potential buyers as the company anticipates putting itself up for sale next month.
WEBSITES:
A ChangeWave survey of 3,489 people revealed that 9% of the respondents are likely to buy the Apple Inc (NASDAQ: AAPL) iPhone when it comes out in June, reported Seeking Alpha.
According to CNBC Champ Thomas Ko on MSN Money, IMAX Corporation (NASDAQ: IMAX) should benefit from what he anticipates will be a record opening for Spider-Man 3.
Texas Instruments Incorporated (NYSE:TXN) mid-quarter update conference call at 5pm. Note that Stifel just upgraded Texas Instruments to Buy from Hold as they believe the mid-quarter update will show improving trends.
Tuesday March 13
Goldman Sachs Group Inc. (NYSE:GS) to report Q4 earnings; conference call at 4:30pm.
Qualcomm Incorporated (NASDAQ:QCOM) to hold annual shareholder meeting at 11:30am.
PDUFA Date for GlaxoSmithKline plc ADR's (NYSE:GSK) Tykerb, a breast cancer drug.
Wednesday March 14
Retailers Hot Topic Inc. (NASDAQ:HOTT) and Zumiez Inc (NASDAQ:ZUMZ) to report earnings. Hot Topic's Q4 conference call is at 4:30pm, Zumiez's Q4 conference call is at 5pm.
PDUFA Date for Novartis AG ADS's (NYSE:NVS) Tekturna, a treatment for high blood pressure.
Thursday March 15
Bayer AG ADS (NYSE:BAY) to report Q4 earnings; conference call at 6am.
Six Flags Inc (NYSE:SIX) to report Q4 earnings; conference call at 4pm. Note that earlier this week, Cramer specified Six Flags as a stock he was bullish on during the "Lightning Round" of his Mad Money television show.
Friday March 16
IMAX Corp (NASDAQ:IMAX) to report Q4 earnings; conference call at 8:30am.
AnnTaylor Stores Corporation (NYSE:ANN) to report Q4 earnings; conference call at 8:30am.
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.
IMAXCorp. (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.
MOST NOTEWORTHY: Altria Group (MO) and Home Depot (HD) top today's extensive list of upgrades.
Altria Group (NYSE:MO) was upgraded to Buy from Neutral at Goldman Sachs, in addition to being added to their Americas Conviction Buy List. Goldman upgraded shares of Altria because they expect the Kraft (KFT) spin-off and improving international tobacco trends to drive shares higher.
Home Depot, Inc. (NYSE:HD) was upgraded to Overweight from Underweight at JP Morgan. Shares of the home improvement retailer were upgraded on the belief that management will be more willing to invest in the business next year.
OTHER UPGRADES:
Bear Stearns upgraded JetBlue Airways Corp. (NASDAQ:JBLU) and AirTrans Holdings, Inc. (NYSE:AAI) to Outperform from Peer Perform. The firm upgraded both airlines citing the potential Delta Airlines, Inc. (Other OTC:DALRQ) and US Airways Group, Inc. (NYSE:LCC) merger and the implications for likely capacity reductions and an improved RASM outlook. JetBlue was also added to Bear Stearns Focus List on today's news.
Roth Capital upgraded IMAX Corp (NASDAQ:IMAX) to Hold from Sell as they believe business has bottomed and a fair valuation.
Deutsche Bank upgraded Vodafone Group (NYSE:VOD) to Buy from Hold. The firm said Vodafone has upside to consensus estimates due to additional cost reductions and in-market consolidation in Europe.
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The Wal-Mart Weekly: Retailer accused of sweatshop conditions in Bangladesh
Fog clearing - maybe. Clear skies - no! GE, JNJ, MRK, PG, RTN, WFC
Cramer on BloggingStocks: A fighting chance for the credit markets.
