LeapFrog Enterprises, Inc. (NYSE:LF)

CAPS Rating: 4 out of 5

The Company designs, develops and markets technology-based educational platforms with curriculum interactive software content and stand-alone products and these products are for sale through retailers, distributors and directly to schools.


Player Avatar TMFBlacknGold (98.68) Submitted: 12/19/2012 9:18:59 AM : Outperform Start Price: $7.98 LF Score: -85.19

Everyone says this one has tons of growth ahead of it, and it probably does, but how many people account for up-and-coming children's tablets? As Matt Koppenheffer pointed out it a 10% article back in September:

"In 2011, three retailers -- Wal-Mart, Toys "R" Us, and Target -- accounted for 64% of LeapFrog's domestic sales and 30% of international sales, so there's little surprise that investors are concerned about this competitive move. The LeapPad is hardly LeapFrog's only product, nor is Toys "R" Us its only channel. However, the LeapPad has been a key driver for LeapFrog's recent growth, so a good reception for the Tabeo could put a real dent in LeapFrog's prospects."

Full article: http://www.fool.com/investing/general/2012/09/10/why-leapfrog-shares-fell.aspx

I'm always a little cautious when it comes to these things. LeapFrog does have advantages over the newcomers and if it wasn't so successful there would be no newcomers. That's why it gets the green thumb for now.

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