IMAX can't wait until Avatar 2 comes out

Shares of IMAX Corporation (Public, NASDAQ:IMAX) have been invigorated during the past month as consumers flocked to IMAX to watch Avatar.

However, shares are dropping today along with the entire market, thanks to sour earnings from Alcoa.

The question is, should you buy on the dip?

Last week, IMAX announced its first $100 million box office quarter for the 4th quarter, all thanks to Avatar.

Possible Trilogy?

Shortly before "Avatar" came out, director James Cameron told MTV that he has a larger story in mind for the movie's universe. "We'll follow Jake and Neytiri," he said. "I have a trilogy-scaled arc of story right now, but I haven't really put any serious work into writing a script."

At that point, there was nothing official to announce. People knew the movie was going to make money -- this is James Cameron we're talking about -- but no one could know just what a monumental success "Avatar" would become. Now that we know? Cameron's much more open to discussing what's next.

At a Q&A with Cameron held in Los Angeles earlier this week, Ain't It Cool News reported that the director said, "Yes, there'll be another." Four simple words, and we have confirmation that a sequel will happen. Not that anyone really doubted it I think, given the amount of money spent developing the technology and the time required to transform stars Sam Worthington and Zoe Saldana into Na'vi.

Fellow Masters, it may be time to cash in on your IMAX shares, but if prices fall below $10 again, you should snatch up shares before the next Avatar sequel.