Now that we have entered August and the bulk of Hollywood's summer blockbuster season has passed, Jim Cramer thought this would be the perfect time to check in with IMAX Corporation.
IMAX is the company behind the ultra-big-screen format where many people love to see the loudest and most explosive movies. IMAX screens are now located in more than 950 theaters across 65 different countries, and more than 400 theaters are on a waiting list to install an IMAX screen.
Cramer last spoke with IMAX in June 2013, and since then, the stock has had a 40 percent gain. However, IMAX hit a wall a month and a half ago, and Cramer wondered if this was in part due to the new weakness in China, as it seems to be a growing portion of its business.
Currently, IMAX has 239 theaters in China, and company plans to take its IMAX China business public on the Hong Kong stock exchange.
"I think this Chinese exposure is the reason why IMAX is now six points off its highs, especially as the U.S. movie box office has been incredibly strong during this period," Cramer said.