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Author: educatedidiot Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 558  
Subject: Re: THQ market share Date: 1/7/2002 10:54 AM
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I definitely agree that JAKK appears to be very undervalued, but that is what has me confused. Both THQI and JAKK get a large chunk of their revenue from the same products. Not all of their revenue, of course, but a chunk large enough to make a BIG difference. On the one hand, THQI is very richly-valued, actually a little overvalued, in my opinion. On the other hand, JAKK seems to be quite undervalued.

What do you think is causing this disparity? I've heard about the shareholder-unfriendlyness of Jack Friedman, but could that really cause JAKK to be discounted so heavily?

I suppose another factor is that stocks in the video game sector tend to get richer valuations than toy makers like JAKK. Now even if this is the case, I think many people may be overlooking the fact that a very large percentage of JAKKs revenue is coming from video games, and therefore should receive a valuation at least similar to THQI.

I was just wondering if anyone had any other ideas regarding JAKKs valuation that might cause it to be so cheap. I am relatively new to this stock so I am not as familiar with JAKK's management as I'm sure many of the other people here are. Could they be the reason the stock is so heavily discounted?
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