JAKKS Pacific off and running after upgrade

Hilliard Lyons upgrades JAKKS Pacific (JAKK +3.7%) to a Buy rating from Neutral on its view that valuation is attractive on a long-term basis.

Shares of the toy maker are at a 6-month high off the firm's endorsement.

From other sites
Comments (1)
  • joker
    , contributor
    Comments (172) | Send Message
    This stock looks quite like a no-brain for buying. Don't know why there are so heavy a short portion out there, and still there.


    Here is a quite easy logic for valuation:


    Above $600 million revenue per year; let's simply assume a 4% profit margin, then there should have $24-$25 million earnings; and at current price, the market cap is about $160 million. So it's a 6.7X P/E stock. And kids are going to buy toys regardless recession or not; so you won't expect revenues going to drop much; and can anyone dispute a lousy 4% profit margin assumption? Any business can make above that, if they are seriously in business.


    So just wait and watch those no brain shorts get killed.
    11 Mar 2014, 03:30 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs