Next page... 8 if you discount the effects of that
one-time hit, 2004 revenues shot up
105% over 2003. Today, the company trades with a
forward P/E ratio of 21.6 and a PEG
of 1.1, suggesting youre getting
pretty fair value for your investment
bucks. But what stands out is that this is
one innovative cinema company that
is actually adapting
to the changing face of filmmaking.
With the solid foundation already
laid in the US, IMAX is now in a
great position to continue growing
its revenue and expanding into new
global markets. There is simply no
comparable product or competitor,
so the companys penetration into
Asia should be unimpeded. As studio blockbusters pile up
huge grosses, IMAX theaters will see
more profit per screen than tradi-
tional theaters due to higher ticket prices, more seating and digital pro-
jection systems (which eliminate the
cost of film transportation and stor-
age). Now that IMAX is showing sev-
eral of the top Hollywood block-
busters each season, its time to grab that popcorn, kick back and
watch the profits roll in. Buy IMAX Corporation
(IMAX:NASDAQ) under US$11. Alex Chinn is an editor at the Red Zone Profits group. ¦ IMAX 1-Y ear Chart (Weekly) 35 25 20 Sep Oc t No v Dec 05 F eb Mar A pr Ma y Jun Jul 0 5 10 10 15 5 30 0 Profits from the pictures!
Batman and Wonka
driving IMAX upward! Lending and spending: Cash in on Americas vast
culture of consumption with this leading, and
undervalued creditor S T R A T E G I C W E A L T H It is no secret that most
Americans love credit. It is a signifi-
cant driving force behind this coun-
trys economy. Without bulky lines
of credit, folks would be forced to
spend within their means, and we all
know thats no fun. Currently, Americans are in debt
up to their earsUS$3 trillion worth
of credit, to be specific. Most folks
are using every bit of their allotted
share. A recent study showed that
the average household credit card
balance was approximately
US$7,500. Because of these huge
amounts of debt, Americans pay
more than US$65 billion in interest
to banks each year. Most lenders are making healthy
profits, even though theyre charg-
ing single-digit interest ratespr etty
low by historical standards. Take a
look at the automobile loan industry,
for example. The average 36-month
used car loan from Credit
Acceptance Corp. (CACCE:NASDAQ)
has a 7.02% interest rate attached.
Even with that lower-than-usual rate,
shares have soared by over 200%
during the last two years. Imagine
how much the company could have
raked in with even higher interest
rates. But, there is one rapidly growing
industry charging interest rates well
into triple digitsthe payday loan
industry. Payday? You bet! The payday loan process is quite simple and ingenious. If a person
needs a small, short-term loan, typi-
cally no more than US$300, they sim-
ply go into their nearest loan center
and fill out a short application. In most states, the only require-
ments to get a loan are to have a
valid drivers license, an active
checking account, and a job. Once
the application is accepted, the bor-
rower writes a check to the lender
for the amount of money requested
plus the fee that the loan center
charges, typically US$40. The check is postdated for the
borrowers next payday in hopes
that the borrower will have enough by Andrew Snyder