Just curious what everyone thinks about 21st Century acquisition. I checked out their products- they sell military action figures and such.Thats it though, right? I mean, is that all they are acquiring? Others thoughts would be appreciated......
It could be a very nice fit with JAKK and there could be quite a lot of efficiencies to be wrung out of 21st Century. The big "if" is how much JAKK ends up paying for the company. I'd be obliged if our resident collectibles guru (nudge, nudge, erik) could comment on 21st Century's products, since they seem to be partly appealing to collectibles. From the comments on the Yahoo board, it sounds like the acquisition would bring in some nice retail real estate at the very least.One thing's for sure: it is nice to see mgmt putting some of the cash hoard to work instead of just sitting on it (and stealing pieces of it).
Brewer,I purchased JAKK earlier at 8 dollars per share, then stupidly sold all of it when it hit 11. They came out with weak earnings and I did not want to lose my profit on this one. My question is, do you think it would be wise for me to buy some shares now that they are over 13? I mean, the management is shaky, but I am having a hard time finding companies as attractively priced as JAKK. Guess I am just looking for reassurance......
JAKK is very volatile and mgmt is not terribly good at "managing" relations with the street, so you might get a chance at lower prices on a bounce down. However, you'd be taking a risk that this will not happen and then you'd lose out. If JAKK meets your valuation criteria now, then go for it. Otherwise, hold your money, since there are lots of fish in the sea.If you're looking for other deep discount stocks, check out PPD, PLMD and FOSL. RKY has been oversold, especially as it is looking like a hot summer so far, but I wouldn't buy unless we dip into the 40s (then its a gift). If HAIN puts out a lousy quarter next week, the stock might REALLY dive, and I'd be a heavy buyer since HNZ could pretty much take HAIN out any time they like (and probably at a nice premium). I had my eye on OCA when it was under 20, but my cash was going into PPD at the time.Anyway, like I said, there's lots of other opportunities out there if you don't think that JAKK's a compelling value. I personally expect JAKK to see 25 within a year if things keep panning out for them.Disclosure: I have positions in JAKK, PPD, RKY, HAIN and PLMD. After all, I wouldn't suggest something as a compelling value and pass up on it myself...
This is huge. 21st Century is a very high quality, very popular company with the collectors (and presumably, the munchkins, assuming kids actually play with toys anymore).In the 12 inch GI Joe game you've got three major players- Hasbro, of course, 21st Century and Dragon.Dragon is by far and away the absolute best cream of the crop. They make highly detailed figures that they market more toward adult collectors than anyone else. Typically their figures will run $30 or more retail. Hasbro, is of course, Hasbro. Their quality is a bit slipshod on some of these 12 inch lines, but it's a "real" GI Joe.21st Century makes awesome figures. They are cheaper than dragon and better than Hasbro. Do an eBay search on "Ultimate Soldier" and you'll see quite a bit of enthusiasm for their product.Regarding management, I'm not sure what all the fuss is about. According to Multex, insiders own 7% of the company. Maybe it's not a lot but they're also not going to be manipulating the stock much either.If management's wealth is not tied into the price of the stock, then its tied into the success of the business, and the business is doing really, really well. All their numbers are stunning, except perhaps recent EPS growth, but MAT and HAS had negative earnings.Anyone can give you a song and dance about how they're a great leader or manager or teambuilder or whatever. But look at the numbers and the snake oil salesmen come out of the woodwork. JAKK didn't get the ROE, growth and margins they enjoy with no debt by having bad management.Bottom line- JAKK is a young company. It's scrappy. It's hungry. It's consistently adding proven winning evergreen product lines to its mix. It's a really good long term hold until you see the fundamentals fall apart. So far that hasn't happened, and it isn't going to happen anytime soon if they keep adding companies like 21st Century to the fold.
ECO- My dollar cost average on JAKK is now $0. And I have twice as many shares as my initial position. My first buy was at $19 and I sold to $0 at $13.75. So even though the stock is down 28%, I've "doubled" my money.Maybe you don't know what to make of JAKK, but the street doesn't either. It goes up and down like a yo yo. This is great for dollar cost averaging.If you like JAKK, just buy some. It's still plenty cheap, with a pe less than 1/2 that of the average s&p 500 stock. But don't put in all your money at once. If the stock dips 10 or 15 or 20%, buy some more. There's no reason it won't go back up. If you buy and the stock never dips, well that's fine too.There's no reason JAKK won't be a billion dollar company within a few years. At $1 billion market cap, that's around $55 per share. So any free shares you can pick up in today's volatile market will eventually be worth something.
I collect these things! 21st Century threw there hat into the 12 inch military figure ring a few years back. They are responible for Hasbro competing so hard in that area again due to the amount and varriety of figures they offered. Every time 21st made something new, Hasbro tried to do the same. There was a lot of heat between the two companies over the 12 inch market. If Jakks can keep this line going and keep up or improve the quality, I feel they may have bought the goose that lays the golden eggs. 12 inch is in.
Only one BIG problem. I don't think Jakks has ANY expertise with the collector market & may not have the smarts to keep 21st's top/keydept. heads that built this baby up to where it is. I've been a fan for a while, but don't see ANY experience at Jakks for the things that made me aware of 21st like their advertising in magazines & those great tv commercials (if you didn't catch it on tv, I saw even more on their web site) so I'm worried that they'll dump the 21st r & d, creative & sales brains & screw up the big Christmas buying season!
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