RC2 Corp (RCRC)

RCRC is refocusing their toy business on their strengths, and getting good leverage with some very powerful and enduring brands, such as Bob the Builder and Dora the Explorer. A lot of potential here.

Video pitch: http://www.votigo.com/contests/showentry/1992

What really gets my wife and I interested in this particular stock at this particular time is the partnerships that this company has. They recently renewed their partnership to build Thomas the Train toys. And they've got a new partnership with Nickelodeon for toys based on Dora the Explorer, Backyardigans, Blue's Clues, and Spongebob Squarepants. With a 2 year old daughter, I am very familiar with the character recognition of Dora, the Backyardigans, and Blue (any paw print she sees in the house is a "clue"). And Thomas is huge with the 2-year old boys she's friends with. And, I shouldn't forget other licensed properties, such as Winnie the Pooh -- which has a new show launching at Playhouse Disney soon -- as well as Bob the Builder, The Wiggles, Barney, Sesame Street, Disney Princess, Finding Nemo and Spiderman. I think any parent of a toddler would recognize a majority of these names, if not all.

They acquired Learning Curve International in 2003 and The First Years in 2004. With our 2-year old, and a new baby that has just arrived, we've bought many RC2 products as a result -- I think these acquisitions were smart. In 2005, they introduced new products under the Lamaze name, designed to encourage babies to reach fundamental milestones. I think this direction fits so well with the toys and the licensing partnerships -- shows like Backyardigans, Dora, and Blue's Clues all encourage toddler development.

Although RCRC has trounced the S&P 500 over the last 5 years, the stock slumped in late 2006. They've had some disappointing results recently, and they've chosen to discontinue some toy lines. They also have some investors concerned over growing inventories. When investors are fearful, it is often a good time to invest, especially when investing in a company whose products you understand and see the value in. This is one of my favorite styles of investing -- small cap + growth potential + buy-what-you-know + buy-when-investors-are-fearful + recently-paid-off-long-term-debt = THUMBS UP!

My introduction to this stock was courtesy of Bill Mann and the Hidden Gems service, so I've got to give credit to Bill for the introduction and pointing out some great qualities of the company and stock. Thanks, Bill.

The lead scandal is over. The market hasn't bottomed, but last I checked, kids don't give a **** - they want their toys! As long as they are able to secure licensing agreements for all the biggest blockbuster characters, I don't see how RCRC will suffer. Long term hold.

CAPS Rating - 5 Stars [487 outperforms / 24 underperforms]

A well run small cap toy company. A good growth stock around 25.30 P/E

They dumped their un-profitable sports section of their company in favor of focusing on toys for young boy below 5.

This is a great small cap growth company.

Following Foolishly ... A Hidden Gem... I think it will hit a peak mid-summer, then a sell off, then a return to new highs in nov/dec. I sense a split coming... who knows why. Just a sense I get. Not to mention the board approving 75mil stock buyback over 2007. hmmmm....

Big institutions are selling, the company recalled its toy trains because it contained lead in its paint.i feel like there are more bad news for this company. HEY if the big guys start to sell that means you should leave too.

My child loves their Wub-a-Nub, as do I, those things are worth their weight in gold.

goooood

Severly punished. Fundamentals are still intact. Should see some buying as the sector recovers the lead-lash and enters its lucrative holiday sales season. Company still needs to get more and newer partnerships in place for the long term. We should see some decent upside in the next six months.

Toys and Games arent going away. manufacturing in china is not going away. Panic has given a good buyin opp... lets buy :D

Thomas the Train and his many friends have a timeless appeal to toddlers from aged 2 to 12, and that market is not going away.

HG recommendation.

The negative press will subside and the value will be revealed.

Too Cheap! Over reaction! As they say: "be greeding when others are fearful and be fearful when others are greeding" Feb 1 2008

I believe that this is a lasting stock to purchase, even if your first starting out. It's one to watch.

This stock is quite attractive because you have here a company with strong yearly sales a great bottom line and theres always going to be a Christmas and birthday every year for everyone of us not to mention all of the newborn babies everyday needing the good products this company has to offer.

Tim Hanson

Over 80% of RCRC's sales come from US domestic market, so the slow down in economy will definitely affect her income in a significant way. Furthermore, the product cost will be rising partly due to the high inflation in China, and partly due to more tests to be done after the recall issues. Share price will continue to be soft in near term.

hg cheap

Too many kids love these branded toys. Parents are watching the steps taken by companies to ensure toy safety, and they'll be buying these as their kids demand!