$1M Full Port on IMAX

Back in February, I started building major positions in two movie theater stocks — specifically CNK and IMAX. This is well documented because I’ve suggested these stocks several times on WSB over the last 5 months — and I must say, the negative feedback was pretty heavy. Movie theaters are definitely not a sexy tech stock with AI in its name.

But I’ve been making this momentum trade since the pandemic recovery in what I call the “Summer Hype Cycle”, which is basically a historically strong seasonal period for movie theater stocks that usually begins in late spring and peaks in the early fall — coinciding with the release of major summer blockbusters.

This year’s bockbuster season got off to a very slow start (especially for IMAX), but the box office has been finishing strong in June/July with a projected $420M opening by Deadpool this weekend — highest opening for an R-rated movie ever. So the end results did not disappoint. Total portfolio is up 45% ytd. At one point, I was full-port on IMAX with over $1M, which has been surging in recent weeks.

To all the naysayers out there who thought movie theaters were dead. I’m happy to say you couldn’t be more wrong.

Cheers….and get your popcorn out!