Image Bounces Back1 Jul, 2008 By: Erik Gruenwedel
Negative repercussions from Image Entertainment Inc.'s $10.4 million write down of its DVD library last week apparently were short-lived, as shares for the Chatsworth, Calif.-based distributor rebounded nearly 13% to close July 1 at $1.05.
Image's stock, like many publicly traded entertainment companies, is a penny stock (below $5 per share) that took a turn for the worse when it dipped below $1 June 30.
According to Nasdaq regulations, stocks on the exchange must maintain a price of at least $1 per share. If a stock dips below that amount for 30 consecutive business days, the exchange can take action to remove or de-list it.
Image president David Borshell has maintained the distributor is on solid ground financially and said it took the action to write down the DVD catalog for both fiduciary and strategic reasons.
The distributor is actively acquiring and releasing cast-driven content, including recent ThinkFilm titles Before the Devil Knows You're Dead, Numb and The Air I Breathe, among others, that Borshell said garner stronger response from retailers and consumers.
“Image is not in danger of being de-listed,” he said.