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Possibly the best stock for 2010...

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February 25, 2010 – Comments (6) | RELATED TICKERS: LF

LeapFrog Enterprises Inc (LF). Today's closing price: $5.47

I'm sure you've heard of the company. Heck, I'm even sure you played with their toys or you just got some for your children or grandchildren.

Still, let's see what we can find on LF:

LeapFrog Enterprises, Inc. (LeapFrog) designs, develops and markets technology-based learning products and related content for the education of infant through grade school children at home and in schools around the world. LeapFrog has developed a number of learning platforms, including the LeapPad Learning System, Leapster, Tag reading system, Clickstart, and Didj, that support a library of software titles. In addition, LeapFrog markets a line of educational toys that do not require the separate purchase of software. These learning toys are targeted at young children, from infants to five year olds. Its products are available in six languages and are sold globally through retailers, distributors, directly to consumers via the leapfrog.com webstore, and directly to schools. LeapFrog organizes, operates and assesses its business in two primary operating segments: United States and International.

OK, so here is what I think: I think LF is gonna double in 2010. Easily. 30-50% return in 4-5 months. Easily. Possibly, much sooner. I'm telling you...

Why I think so? Because LF's chart is a beauty. A BEAUTYYYYYY. One of the best looking ones I've seen in a long, long time. And I look at charts every single day, almost every hour of the day. I'm telling you... 

Now, I do understand if you think buying stocks just based on charts is stupid. I even understand if you think giving charts any importance when buying a stock is stupid.

But let me tell you something: There is something big, real big going on at LeapFrog Enterprise.

I mean, how else can you explain the fact that LF went up 67% during the last 3 months. SIXTY SEVEN PERCENT. I mean, 67% is no joke, and I hope you agree. And what about the last 12 months, you ask? 250%. Yes, two hundred fifty percent. WOW, that's all I got to say.

Now, I do understand if you think buying LF after such u run-up would be downright stupid. I would even understand if you thought now exactly is the time to sell, not to buy.

However, my friends, let me tell you: There is something big, real big going on at LeapFrog Enterprise.

What, I don't know for sure, but I do have my theories. Here are the 3 most likely ones that I came up with:

1. ALSTRY IS RIGHT. Yes, Alstry is right. For weeks now, Alstry has been telling us Digital Age is coming and is going to bring prosperity to the world never seen before. And you know, prosperity means more toys for children. Which toys? Digital toys, of course. Now, have you seen LeapFrog's toys lately? All digital. OK, some eletronic ones too, but they sure look digital to me. I mean, they are nothing like toys I used to play with. These toys they make today, you need minimum a masters degree in engineering to figure them out, I'm telling you...

2. CASH FOR CLUNKERS. Yes, cash for old toys so you can buy your kids new ones. That's the next big thing goverment is gonna come up with to help the economy. Did you think these astronomical returns LF had so far are just an accident? Not so, my friends, not so. 

People who make decisions in Washington knew this for a while now so who did they tell? They told their friends on Wall Street, of course (for a small fee). Just check data on institutional ownership and you'll see that during the last month, institutional ownership in LF rose considerably. Now, I do like to see that LF still has a very high insider ownership (between 30 to 50%, data varies), but let me tell you something: I like when institutions are buying too. Wall Street cats do not put their money in a stock that is not going to double in less than a year, my friends. I'm telling you...

3. RECESSION. Yes, my friends, times are tough. Economy is in the dumpster. Millions of people lost their jobs. Now, what do people do when money is tight (or non-existing)? Yes, they stay at home. No more dinners, no more movies, no more sitting on the bench in the park (people stole benches for firewood). So people stay at home with their spouse, their girlfriend or boyfriend. And what do they do at home? If you said: "Watch TV" - Wrong answer.

I mean if people are in recession, do you really think they have money for cable or satellite. No, they don't. So, what's the only other thing left to do when there is nothing on TV? You got it.

I mean, even if you haven't visited a hospital lately, I'm sure you've probably heard that there is not enough doctors and nurses to take care of all the births that are just exploding lately. Babies are literally taking over our cities and our towns. And you know what that means for LeapFrog. You damn right my friends, you damn right. There is nothing that makes you spend your money like your screaming child, let me tell you. And with the Octomom being so popular, I'm sure there is more and more teenage girls wanting to be just like her... I'm telling you...

 

What you say? You like LF? Ready to make some easy smackers in toys?

Easy money, my friends, I'm telling you...

6 Comments – Post Your Own

#1) On February 25, 2010 at 11:47 PM, dragonLZ (99.37) wrote:

LF Crushes Street Forecasts

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#2) On February 25, 2010 at 11:54 PM, SUPERMANSTOCKS (59.27) wrote:

I have kids, enough said!

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#3) On February 26, 2010 at 12:23 AM, APJ4RealHoldings (33.84) wrote:

budget cuts.

there's more money in the retiring/aging/dying than the kids growing up demographic....

....to do better than luck in that demographic, one must position themselves in a company that are likely to get more/new/increased govt education funding/contracts/purchases (in an environment when these budgets are being cut).  Or LF can come out with a killer product line with success of the line in homes which is not being expected by teh market. 

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#4) On February 26, 2010 at 3:05 PM, SUPERMANSTOCKS (59.27) wrote:

I will say this much. At around $5 a share LF is a good buyout target by a Mattel or a Hasbro. I am looking to get in within the next week.

I will add that this company is doing far better than your standard Dow Jones stocks and is beating the S&P by a long shot. I am not one to pump and dump. I look for the best deals and I can say with confidence that Leaf Frog is one of them. Think of how many babies are being born each year and how many units they sell due to this fact. Lets face it the world it full of unplanned pregnancies and horn dogs out there. I know that is a wild statement. But it does have some common sense built into it.

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#5) On March 25, 2010 at 8:27 PM, shoes334 wrote:



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#6) On April 07, 2010 at 12:22 PM, vbpoutsourcing (< 20) wrote:

I don't have any children myself, but I do know other parents (with toddlers) and I definitely have seen how much influence kids can have over what parents spend their money on.  So many people are hooked on online shopping and know for a lot of parents its simply easier to buy their kids toys online rather than dragging them to the store leave with way more toys then they intended to buy just to keep there kids from kicking and screaming.  I think LeapFrog is a win for consumers, LP, and it's stock, not only because it is aimed for children but it is online as well.

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