RealD is nearing the end of the marketing phase of their IPO and the curent plan is to price the offering later this week.
RealD is the leading provider of 3D cinema technology in the U.S. and most of our readers have worn their brand of glasses if they have watched a film in 3D. The company has grown very rapidly and is poised to develop a strong franchise with a high degree of recurring revenue and profitability. So far, however, the company has only made rather large losses as they have been in an aggressive expansion mode.
Simply put, the proposed filing range puts the stock very close to the IV for 2010 of $15, but there is substantial upside if the company continues to execute. In 2011 the IV expands to $25 since longer-term company profitability begins to get factored into the valuation.
Research 2.0 has just published a full company report on RealD and provided a base case for Intrinsic Value. (This full report is available to Toffee and Chocolate subscribers in the Research tab. Just enter your password.)
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