JAKKS Pacific, Inc. (JAKK)

Still a good buy at current price - may drop short term
first but then a good bet by this time next year-

I am waiting for around 11.99 then will hold for a year.

Something will come along for them in terms of product.

End of the day, if your products suck, no one will buy them.

This is a company which has a business model I like, has a solid balance sheet and has consistantly provided solid free cash flow(even ignoring their joint venture). Their outsourced manufacturing replaces fixed costs with variable costs, helping improve profitability during periods of lessened demand. Although I normally would like ownership of intangible property I believe in this instance their strategy of licencing "evergreen" brands(brands which are relatively old, like Pokemon or WWE, whose demand is more stable and less prone to fads) has enabled them to develop a greater portfolio of brands and earn a relatively high ROIC. A good portion of the market cap is in cash and the current price is fairly close to (tangible) book value. Although this company still has a number of risks such as uncertainty in their current joint venture in developing WWE video games and a high conncentration of customers(top 3 customers are roughly 60% of sales), most of this is priced in. I took a small position(~5% of my real portfolio) in this due to its inherent risks but I believe it has significant upside potential.

Toys and leisure always seem to do good in bad times. plus close to book value.

Toy season will be better than predicted as christmas approaches.

screener
CAPS Rating
4 - 5 on 2009-09-02
4 - 5 on 2008-12-31

% Below 12 Month High >= 50
4 Week Price Change %5 - 75
Price-to-Earnings (TTM) <= 15
Price-to-Sales (TTM) <= 10
Price-to-Book (TTM) <= 10
Current Ratio >= 1
Gross Margin >= 20

its cheap right now

Good position and management. They know their business and are undervalued right now due to contract concerns and lack of a blockbuster toy. that said, they should surprise and outperform the market (value). If they do well in any category, they may suddenly exceed the market significantly (more upside than downside).

It is undervalued...good buy..

with the UFC action figures coming in the fall the bottom line will improve, UFC is on fire

Anticitrade says this stock is cheap and I have to agree. Aside from its appealing valuation, the company boasts capable management that seem to understand the need to reposition the company's products for tough economic times.

Book Value

Good value proposition

This stock will oupeform - BECAUSE I SAID SO.

Even stupid people get lucky some times, and today is my lucky day.

Intrinsic value of $32.53

motley cheap stocks

This company has just shy of half of its market capitalization in cash, practically no debt, and consistent earnings at a ridiculously low valuation. I'll take this one to outperform anyday given the margin of safety we have here.

My target for JAKKS Pacificis 38.15. I used my new method for determining a fair P/E (based on G and K). The growth factor was extracted from the PEG found on the web. K was 10%. I hope it works!

Good cash flows with strong balance sheet. Trading at very low P/E after stripping out cash (about 4x forward).