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I truly enjoy someone who thinks about the interplaying dynamics of investing's fundamentals, technicals, pyschology and checks/balances (I'll buy a JAKK's pound puppy from your collectibles store when they become available).

Analysts are a lot like elected representatives -- they can represent, feather their own beds, or serve the vested interests that pay their keep (i.e., their own firm's trading desk or their firm's institutional clients). Regardless of the master they choose to serve, the only real check/balance and management motivation is the overall market and the valuation it assigns (i.e. the investing hoi polloi are the real referees).

Friedman screwed up THQI (when it was Toy Headquarters), so he started in a hole as both corporate manager and investor-oriented steward when he founded JAKKS. He was doing a great job -- not least in his own self-interest given how much stock he owns. But the loans, re-priced options and missed estimates have revived valuation-depressing investor doubts that are magnified in the inherently low-visibility (feast on fad, found a forever franchise, i.e. Barbie, or fail in famine) toy business, exacerbated when consumers' discretionary disposable income is squeezed by economic uncertainty.

The low stock price does indeed hold the company's feet to the fire to justify acqusitions, but how much better to make shrewdly-priced (accretive)purchases with a premium-priced stock rather than with cash?

I think we're going to get a very respectable return on JAKK, it's just that Jack set back our timeframe a bit.
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