Comments From The Stock Masters 3/16/2007
New 52-week lows for two of our favorite companies we have slammed in the past - Atari Inc. (ATAR) and Bally Total Fitness (BFT). Bally's has been on a terrible decline ever since control of the company went over to hedge funds - Pardus Capital Management and the Liberation Investment Group LLC who combined own 26% of Bally's stock. Funny thing about Bally's is the relationship to Steven Seagal's weight gain and the downfall of his career as it relates to Bally's stock price decline.
Coincidence? I think not, ever since Exit Wounds, both Bally's and Seagal have been turning our poor performance. Nothing makes a better movie when you combine a washed-up action star with an Rapper/Actor (the Oscar Academy goes nuts for these films). 
Bally Fitness is down an incredible 61% today, Atari is down 6%. Great job corporate America!!
Well, plenty of time to get in on Imax Corp. (IMAX). Instead of reporting earnings today they announced that they are delaying the filing of their 2006 financials while they evaluate "certain accounting errors."
Imax's genius management and audit committee are looking at an estimated $2.5M in errors that took place between 2001 and 2006. The errors relate to certain expenses that were incorrectly accounted for as capital costs.
This comes as little surprise and just goes to show you that way back in August, the Masters were on the money when we wrote: IMAX: How to ruin a great company. Can IMAX return from the dead, do they have something promising to say? The public will have to wait until some time before March 30th, which is when they plan to file their 2006 results with the Securities and Exchange Commission. If only our jobs were that simple...
"Hey Boss, I didn't finish my work today and I'm thinking, how about I get my stuff done by March 30th?"
"That sounds fine Peter, here's $10,000."
"Thanks Skip!"
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