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Stocks H / Hasbro, Inc.


Subject:  Re: 'Menace' toy sales soar despite critics Date:  6/1/1999  6:25 PM
Author:  jradoff Number:  327 of 1233

>> Will the soaring sales result in a rising price for the Hasbro stock? <<

Who can predict what the market will really think? But in general, if the market believes that the soaring sales are sustainable and/or point to a strong business model as HAS, and they believe that this additional information makes HAS seem undervalued at current prices, then one would expect the price to go up. At a P/E of 20, I think they're on the somewhat undervalued side at present (I'm sure there are plenty out there who would say the opposite, of course).

I think the current stock performance is somewhat reflective of people who jumped on board solely on Star Wars hype, got disapointed that HAS didn't perform like a 'net stock overnight, and then dumped it at a loss...

Barring a significant economic downturn I think people are still going to buy more toys and games every year.

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