'Menace' toy sales soar despite criticsBy Richard MorganNEW YORK (Variety) - Any disappointment in ``The Phantom Menace' as a movie, story or box office phenomenon hasn't affected a licensing program producing tons of ``Star Wars' merchandise and generating auction bids topping retail prices by hundreds of dollars. ``Factories are working overtime trying to keep up with demand,' Burnham Securities toy analyst David Leibowitz reported Tuesday. ``The number of consumers who are buying everything in pairs -- one to put away as a collectible, the other for the family's toy-playing member -- is raising eyebrows, despite very high expectations in the first place,' he said. Leibowitz added that he hasn't heard a single ``down-in-the-mouth statement' about ``Phantom's' performance from anybody in the licensing community. The upbeat appraisal extends to tie-ins as well. Pepsi-Cola spokesman Jon Harris said its ``Phantom Menace' campaign, which began last week with the introduction of ``Star Warsian' character Marfalump, couldn't be going better. ``Early indications spell success,' he said of the May-September effort that will include the release of new cans every two to four weeks. Harris also promised that ``Phantom' fans will see a lot more of Marfalump, the spokesalien created expressly for the Pepsi campaign by ad agency BBDO-New York and ``Star Wars' creator George Lucas' Industrial Light and Magic. Slated to air later this week, for example, is the campaign's second commercial, in which Marfalump attempts to wow a date by acting out lines from the movie. Anecdotal evidence from Tricon Global Restaurants -- the KFC, Pizza Hut and Taco Bell chain spun off from PepsiCo two years ago -- suggest its ``Defeat the Dark Side' effort is off to an equally fast start. The $50 million campaign, which began May 12, is intended to get fast-food consumers to visit all three chains for a variety of premiums and prizes. The ambitious objective, said Mitch Litvak of the L.A. Office, a consultancy specializing in entertainment promotions, is to get incremental sales. And based on his field research, in which Taco Bell loyalists are being spotted at KFC and vice-versa, that's exactly what the campaign is doing.
Will the soaring sales result in a rising price for the Hasbro stock?
Soaring sales should indeed increase share prices. I joined you all today, as I bought in at 28 3/4. Hey, I tried to help you all out.... I expect to hold these for the next several years, barring obvious trading opportunities....DOC007
>> 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.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |