Mattel, Inc. (MAT)

TCstudy (42.29) Submitted: 9/22/07 1:58 AM : Start Price: $23.20 MAT Score: -2.18

This stock is heading down, especially after the Christmas selling season. That's when the poor sales numbers are going to show up. Any reports about a manufacturer that threatens a child's safety and scares parents is going to sting that producer.

Parents and grandparents are going to think twice about what they buy for their toddlers this Christmas and anything that says, "Made in China" is going to be stigmatized. Stigmatized products don't sell.

I thought these reports might have been overblown but I was shocked tonight when I saw one of my daughter's toys on the news. It hit home literally.

I've already heard that people are looking at wooden toys as an alternative. Scaring parents is something that sticks and won't be forgotten quickly. Even if all of the suppliers problems are solved, the damage to Mattel is already done because the story is out and won't be forgotten this holiday season.

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