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Mattel has two problems:

1) The Learning Company which basically sunk their whole quarter and their stock.

2) Hasbro is taking away market share.

Even with Hasbro taking away some sales they would have had a great quarter if you take away the one time cost (and OH what a one time cost!!!) of the Learning Company's mistakes.

This tells me that the toy industry is indeed still doing very well and has no signs of slowing. That's why I'm confident HAS will probably beat estimates.
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