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Growth is growth. Organic growth is more predictable and sustainable than internal growth.

Consider 2 drug companies. One has a profitable product, makes money and uses the money to buy other companies making a profitable product.

The other has no marketable product but a team of people are staring into microscopes and if they come up with the cure to cancer, they'll make billions.

Some people would rather have the 2nd company (obviously since many biotechs are selling for 1,000 times sales AFTER the "shakeout".) I'd rather have the first company. Even if XYZ Biotech labs comes up with the cure to cancer it will still be marketed through JNJ SGP BMY MRK or some other big company.

It's the same with toys. Hasbro and Mattel had some hits of their own to start the cash flowing. But they became multibillion dollar companies through buyouts. I'd rather buy Monopoly and Scrabble than try to invent my own phenomenon.

As for the valuation, I too would bail after a certain point. I would want a margin of safety. It's sufficient to say that JAKK's price right now is eminently justifiable through its fundamentals. However, there's nothing wrong with taking profits.
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