The news report also showed that IMAX has also licensed “certain exclusive rights in the digital cinema field to a broader range of Kodak patents covering complementary technologies useful for laser projection products” from Kodak.

Unfortunately, we do not know what the royalties paid to Kodak will be other than that it is a royalty bearing payment contract that will be paid to Kodak.  Unfortunately, the deal may not arrive in time.  IMAX noted that it plans to introduce the laser-projection technology “by the second half of 2013″ and that Kodak engineers “will work closely with IMAX engineers over the next 18 months…”

Eastman Kodak shares are up 8% at $1.34 versus a $1.24 close on Friday, but the 52-week range is $0.54 to $5.95.  Kodak shares might be up more, but many investors do not believe that Kodak has another 18 months on an “as is” basis before it runs into even worse financial shape.

JON C. OGG

Kinder Morgan (NYSE: KMI) to buy El Paso (NYSE: EP) for $21 billion and will save $250 million in the merger. (Reuters)

Olympus falls 24% after its CEO is pushed out and certain questionable payments are revealed. (Reuters)

Samsung to seek a broad ban to sales of the Apple’s (NASDAQ: AAPL) iPhone. (Reuters)

EU officials say they will have a plan in place by October 22 to handle the region’s financial crisis. (WSJ)

Anadarko Petroleum (NYSE: APC) to pay BP (NYSE: BP) $4 billion for issues related to Deepwater Horizon. (WSJ)

Walmart (NYSE: WMT) China CEO to leave as the firm faces strict regulation in the People’s Republic. (WSJ)

The UAW’s largest local approves a deal with Ford (NYSE: F). (WSJ)

U.S. postal workers will hire the former Obama car czar Ron Bloom to help them lose as few jobs as possible in a restructuring. (WSJ)

Realtor.com analysts report that the amount of attractive inventory in the home market has fallen. (WSJ)

The IMF says emerging market nations will not help Europe. (WSJ)

Hulu owners may bring in a new investor as their relationship with the premium website company weakens. (WSJ)

Eastman Kodak (NYSE: EK) licenses some of its patents to Imax (NYSE: IMAX). (WSJ)

Carl Icahn buys a large stake in Navistar International (NYSE: NAV). (WSJ)

Mercer finds that young workers are happier that older ones but also are more likely to leave their companies. (WSJ)

A permanent change in how Wall St. operates could hurt Morgan Stanley (NYSE: MS) and Goldman Sachs (NYSE: GS) earnings for a prolonged period. (WSJ)

Amazon.com (NASDAQ: AMZN) begins to sign authors and cut out publishers. (NYT)

The FCC sets a deal for wireless users to get alerts on minute overages that cost them money. (NYT)

Bids to buy EMI from Citigroup (NYSE: C) have fallen short of expectations. (NYT)

Energy bills in the EU could rise for 20 years. (FT)

The G20 give the EU one week to fix its debt crisis. (Bloomberg)

Bankers may face larger losses as government officials look to them to shoulder more of the costs of a Greek bailout. (Bloomberg)

Samsung files new suits to stop sales of the iPhone in Asia. (Bloomberg)

Douglas A. McIntyre

Sony claims that these glasses can cost studios $5 to $10 million per blockbuster release.  The move is expected to come on May 1, 2012, right before the summer film rush that usually has many 3D movie options.  MIB III and another Spider Man are coming in 2012.

What is amazing is that it was just yesterday that Merriman Capital outlined buyout speculation regarding RealD.  Talk about bad timing.  

The report in question from Tuesday also notes that exhibitors (theaters) are not going to react well (duh!) and it also noted that many other studios are likely considering a similar move.  The estimate is that these glasses can cost up to $0.50 per film.

News Corp. (NASDAQ: NWS) has reportedly tried to pass this cost on to exhibitors but that was fought hard.  With Avatar, that could have been one major cost.  And what about the on-again off-again reports of the Star Wars episode(s) being recut for 3D? 

IMAX Corporation (NASDAQ: IMAX) also runs many of the popular blockbuster 3-D films.  Regal Entertainment Group (NYSE: RGC) is down over 3% at $12.28.  Cinemark Holdings Inc. (NYSE: CNK) us down 2% at $19.32.

Oddly enough, DreamWorks Animation SKG Inc. (NYSE: DWA) is up 0.4% today at $19.53.

RealD Inc. (NYSE: RLD) is down 15% at $10.38 today and shares appear to have hit a new post-IPO low of $8.89 earlier this morning as the panic grew that 3D films might be taking a hit.  Unfortunately for RealD, its entire business model revolves around the proliferation of 3D films.  Live by the sword, die by the sword.

As a reminder, there is no assurance that this move will actually stick.  Some international markets already charge for this.

JON C. OGG

The privilege of not having to wear special glasses is not cheap. The larger version of the new screens will cost $2,900. Toshiba says that viewers are better off with its small screen however. That unit only costs $1,400. The 3D TVs will be available in Japan now. It is not clear when they will come to the US.

The AP reports that a viewer must sit 20 inches to 36 inches from the screen, depending on its size. Why anyone would sit that close to a TV  is anyone’s guess.

3D was all the rage in movies,  especially in action films. The attraction of the experience may have begun to fade.  Shares in 3D technology provider IMAX (NASDAQ: IMAX) have fallen from their 52-week high of $21.30 to as low as $9. That indicates that Wall Street is not convinced that 3D has a tremendous future.

The problem with 3D TV sales is that consumers may be happy with 2D. Consumers, in fact, may be satisfied with the television experience they have had since the dawn of the flat screen TV and DVD.

Sales of Blu-ray high-definition players and disks have been slow. The release of the blockbuster “Avatar” on Blu-ray has helped spur sales a bit, but that improvement has only been temporary. It seems that without really successful movies that lend themselves to Blu-ray, that sales will remain tepid.

No one can say that Blu-ray DVD and 3D TV are the same or even directly related. But, it is worth questioning how many gadgets the typical American wants in his living room. He already has a game console that probably is Blu-ray enabled. He has a cable or fiber connection for TV and fast internet. He may have a Video-On-Demand product from a provider like NetFlix (NASDAQ: NFLX), and a capacity to record shows that are on when he cannot watch them. He almost certainly has a PC or Mac along with all that to help make his entertainment experience interactive.

While the consumer figures out the technology he has now, and allots the time he can give to his entertainment, he may decide to wait for the “next best thing,” or he may not buy it at all.

Douglas A. McIntyre

The latest 3-D versions of films like “Batman” and other high-action movies have done relatively well at the box office. It is hard to imagine that the same will hold true of softcore romances and comedies which still make up a very large portion of studio production. Wall St. is worried enough that it has cut the price of 3-D technology firm IMAX (NASDAQ: IMAX) to $14 from its post-IPO high of over $21. Perhaps it is the funny little glasses that people have to wear for 3-D movie viewing and video games that makes the experience less than ideal. Or it may be that 2-D movies are fine. Viewers have become used to then over the last century and that could be a habit that cannot easily be broken.

The troubles with 3-D pornography are fairly simple and not unlike those for less racy content. Do people really want to wear glasses to watch nude people on film? Do porn aficionados really think that 2-D content is inadequate for movies made up of  people having sex?

Of course, 3-D movies are more expensive to view, and the porn consumers may end up being cheap skates.

Douglas A. McIntyre

24/7 Wall St. will look at the Twitter posts at Reuters Biz, WSJ, Financial Times, CNN Money, MarketWatch, CNBC, and 24/7 Wall St. each day to see which stocks are most frequently mentioned. It is clear that in this area of social media these tweet are a sign of which companies the Twitter universe is interested in. These financial sites are followed by a combined 625,000 Twitter users which makes them a sizeable sample of Wall St.’s interests. In some cases, we will publish the actual tweets from the sites.

Among the most tweeted stocks on StockTwits are Baidu Inc (NASDAQ: BIDU), Netflix (NASDAQ: NFLX),  VocalTech Communications (NASDAQ: CALL), IMAX (NASDAQ: IMAX), Veeco Instruments (NASDAQ: VECO), Ford Motor (NYSE: F), A123 Systems (NASDAQ: AONE), and Deckers Outdoors (NASDAQ: DECK).

Reuters Biz: DuPont shares surge after profit nearly triples http://link.reuters.com/kuj79m

Reuters Biz: Europe banks seen raising significant capital: survey http://link.reuters.com/pyf79m

Reuters: Toyota expects next Prius model to be built in U.S. http://link.reuters.com/beb79m

FT: BP plans $30bn assets sale: Oil major plans to sell assets worth $30bn to meet the costs of its massive oil spill … http://bit.ly

FT: Deutsche Bank confident on continued recovery: The German bank reports net income of €1.2bn for the second quarter… http://bit.ly/d9l44f

CNN Money: BP ousts CEO Hayward and taps an American http://bit.ly/arpu8V

MarketWatch: BP shares fall after it confirms CEO replacement; earnings propel banking-sector gains http://on.mktw.net/ac2jkx

DailyFinance: Oracle’s Larry Ellison Is Highest-Paid CEO of Decade http://bit.ly/biljcG

DailyFinance: DuPont Earnings Beat Estimates, Raises Guidance http://bit.ly/duqCy1

Yahoo! Finance: BP second quarter loss -> $16.97B; oil spill amounts to $32.2B http://yhoo.it/9oLdUM $$ $BP #earnings

Douglas A. McIntyre

24/7 Wall St. will look at the Twitter posts at Reuters Biz, WSJ, Financial Times, CNN Money, MarketWatch, CNBC, and 24/7 Wall St. each day to see which stocks are most frequently mentioned. It is clear that in this area of social media these tweet are a sign of which companies the Twitter universe is interested in. These financial sites are followed by a combined 625,000 Twitter users which makes them a sizeable sample of Wall St.’s interests. In some cases, we will publish the actual tweets from the sites.

Among the most tweeted stocks on StockTwits are SPX, IMAX Corporation (NASAQ: IMAX), FAS, Ctrip.com International (NASDAQ: CTRP), DAX, and Sears Holdings (NASDAQ: SHLD).Economist: China says won’t dump Treasuries; surprise fall in German industry orders; US service firms grow weakly http://ow.ly/283ua

DailyFinance: Mortgage Loan Applications Rise on Refinance Demand http://bit.ly/axWxcO

DailyFinance: Sony Cuts Price in Latest Round of E-Reader Wars http://bit.ly/bumG47

Yahoo! Finance: California Pension Funds in Big Trouble http://yhoo.it/9pwKpL

MarketWatch: Bond insurer Ambac gets listing warning from NYSE http://on.mktw.net/drf5pd

CNN Money: Dollar rebounds on uncertain economic outlook http://bit.ly/c3gJ2J

Reuters Biz: EU bank watchdogs set to detail stress tests http://link.reuters.com/feb36m

Reuters Biz: BP boss Hayward in MidEast talks as relief well advances http://link.reuters.com/pag36m

Douglas A. McIntyre

Twitter has, by most estimates, 100 million members, which makes it one of the largest social networks in the world. All major media companies are on Twitter and some have more than one million Twitter users. It raises the question of whether there is wisdom in crowds.

24/7 Wall St. will look at the Twitter posts at Reuters Biz, WSJ, Financial Times, CNN Money, MarketWatch, CNBC, and 24/7 Wall St. each day to see which stocks are most frequently mentioned. It is clear that in this area of social media these tweet are a sign of which companies the Twitter universe is interested in. These financial sites are followed by a combined 625,000 Twitter users which makes them a sizeable sample of Wall St.’s interests. In some cases, we will publish the actual tweets from the sites.

Among the daily top trending  symbols on stock twitter aggregator StockTwits are Dendreon (NASDAQ: DNDN), BP, plc (NYSE: BP), Baidu (NASDAQ: BIDU), Transocean Ltd (NYSE: RIG), IMAX Corporation (NASDAQ: IMAX), First Solar (NASDAQ: FSLR), Cameron International Corporation (NYSE: CAM).

CNN Money: Economy grows for third straight quarter http://bit.ly/dCO1E7

NYT: U.S. Economy Grew at a 3.2% Annual Rate in First Quarter

MarketWatch: U.S. economy expands 3.2% in first quarter, with consumers leading the way http://on.mktw.net/9O5u5M

CNN Money: Apple 2.0: Why iPad mags cost $4.99 each http://bit.ly/dbzLNc $AAPL

Reuters Biz: United, Continental to announce merger Monday: report http://link.reuters.com/vaq22k

CNBC: Steve Jobs Flashes Adobe -> http://bit.ly/9PSVd1 #apple #stevejobs $ADBE $AAPL

FT: The SEC’s strange timing on Goldman: Reports that criminal prosecutors are now looking at the mortgage deal at the… http://bit.ly/98FwTm

United and Continental expected to announce airline merger Monday: reports http://on.mktw.net/aD9hpy

Douglas A. McIntyre

This movie will also may impact on new releases from News Corp. (NASDAQ: NWS) and Walt Disney Co. (NYSE: DIS). Of course, it will be important for IMAX Corporation (NASDAQ: IMAX), and Regal Entertainment Group (NYSE: RGC) and Cinemark Holdings Inc. (NYSE: CNK).

“Dragon” reportedly cost DreamWorks roughly $165 million.  The WSJ noted that about 56% of the “Monsters vs. Aliens” gross came from 3-D screenings in March of 2009 out of a total $59.3 million on its opening weekend, but noted that 68% of “Dragon” sales were from 3-D ticket sales.  That is a disappointment considering that many movie theaters have just put in price hikes to help pay for the 3D projectors and the new digital projector formats.   William Blair has DreamWorks under review and noted that the firm may trim as much as $0.40 to $0.60 from its expected $2.59 EPS this year.

News Corp. (NASDAQ: NWS) released Avatar on December 18 and it hit the $1 billion mark in box office receipts in

early January.  News Corp.’s stock was at $15.63 on the launch date, but it had also run up from under $14.00 at the start of December in anticipation of the blockbuster film giving it a free few-hundred million in earnings.  News Corp. is now a $17.00 stock.  It will be interesting to see if the April 22 DVD launch of Avatar will add yet another bump as a one-time payment will allow for unlimited viewing at home.

Walt Disney Co. (NYSE: DIS) saw ‘only’ $17.3 million in estimated weekend sales for “Alice in Wonderland,” but this Disney film has now grossed over $600 million since its launch.  With Thomson Reuters consensus estimates at about $37.5 billion for its fiscal 2010, the company is very broadly diversified from any one film.

The issue is that DreamWorks Animation SKG Inc. (NYSE: DWA) is now effectively a 3D pure-play, or at least will have the benefits of all titles being 3D.  DreamWorks’ shares were at $39.88 on the Avatar launch date, and it was at $34.60 on December 1…. by the end of last week the stock was peaking up at $44.00 and change ahead of “Dragon.” So it is of little surprise that shares are selling off.  But when you add in a “sell the news” AND a disappointing movie take, you now have a 9% drop back down to $38.95.  That takes away all of the after-buying from the hype of “Avatar” impacting 3D sales.

A big issue here is going to be the price hikes.  Some expect this to help and that the hikes of as much 25% will not hit movie sales.  Some are skeptical.  A quick take here is that at some point this becomes a luxury good rather than a staple entertainment spend.  Taking a family of 4 to see a 3D IMAX film of a hot new movie could effectively end up running almost $100.00 after you include gas, parking, drinks, and snacks at the theater.

Dreamworks’ weakness is having no impact on IMAX Corporation (NASDAQ: IMAX), as its shares are up 2% at $17.44.  The 3D movement and the increase in ticket prices is still a gamble and unknown for a consumer that is just coming off the Great Recession.  IMAX seems to be able to support its sales regardless because it is still in few enough venues that it can sell out its 3D IMAX seats for hot new movies.  That might not hold true for regular 3D movies and traditional movies all over the nation.

Regal Entertainment Group (NYSE: RGC) is down 3% at $17.43 and its 52-week trading range is $10.58 to $18.49.  Cinemark Holdings Inc. (NYSE: CNK) is down almost 3% at $17.70 and its 52-week trading range is $8.63 to $18.47.

DreamWorks will have to hope for a better launch of the ‘final’  Shrek in May.

JON C. OGG

Baxter International (NYSE: BAX) Cut to Hold at Citigroup.
CIENA Corporation (NASDAQ: CIEN) Raised to Outperform at Credit Suisse.
Genworth Financial (NYSE: GNW) Cut to Neutral at BofA/Merrill Lynch.
IMAX Corporation (NASDAQ: IMAX) Cut to Sell at Merriman Curhan Ford.
JA Solar Holdings (NASDAQ: JASO) Cut to Neutral at Broadpoint AmTech.
McDonald’s Corp. (NYSE: MCD) Raised to Outperform at Credit Suisse.
OSI Systems (NASDAQ: OSIS) Cut to Market Perform at Morgan Keegan.
Potash Corp. (NYSE: POT) Target cut to $116 at UBS.
Phillip Morris International (NYSE: PM) Raised to Outperform at Credit Suisse.
Ryanair Holdings plc (NASDAQ: RYAAY) Started as Buy at UBS.
Vale S.A. (NYSE: VALE) Raised to Overweight at Barclays.

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JON C. OGG