Cramer says Hasbro has better toys -- and is a better stock -- than Mattel
Cramer was reviewing toy companies today on his show "Mad Money."
Cramer said Mattel, Inc. (NYSE:MAT) and Hasbro, Inc. (NYSE:HAS) have historically outperformed the market during the first half of the year.
Cramer said toys have become hot again, but you can't own both stocks. The one that Cramer says is better is Hasbro and forget about Mattel.
Mattel is further off its 52-week highs, looks cheaper and has an options investigation behind it. Mattel is even suing over the Bratz Dolls being like Barbie, and it also owns American Girl. He thinks the Polly Pockets recall won't matter because it is from kids eating them.
Hasbro has real toys in the pipeline. It has the Marvel deal for the new Spiderman movie. The Transformers movie will drive toy sales for this. He did note that the Star Wars toys income has been sliding. But Cramer thinks that Transformers may offset this. Cramer said he disliked the Hasbro games business, but notes that it has been turning around.
Cramer said the quality of products matters more than stock valuations or stock performance.
Cramer said Mattel, Inc. (NYSE:MAT) and Hasbro, Inc. (NYSE:HAS) have historically outperformed the market during the first half of the year.
Cramer said toys have become hot again, but you can't own both stocks. The one that Cramer says is better is Hasbro and forget about Mattel.
Mattel is further off its 52-week highs, looks cheaper and has an options investigation behind it. Mattel is even suing over the Bratz Dolls being like Barbie, and it also owns American Girl. He thinks the Polly Pockets recall won't matter because it is from kids eating them.
Hasbro has real toys in the pipeline. It has the Marvel deal for the new Spiderman movie. The Transformers movie will drive toy sales for this. He did note that the Star Wars toys income has been sliding. But Cramer thinks that Transformers may offset this. Cramer said he disliked the Hasbro games business, but notes that it has been turning around.
Cramer said the quality of products matters more than stock valuations or stock performance.











Reader Comments (Page 1 of 1)
11-21-2006 @ 11:40PM
Pete said...
Absolutely amazing. The problem is that you will have to be at
these
places at certain times and be the first, because these items will go
quickly. http://www.bayonacity.com is similar. http://www.bayonacity.com
is an online store that offers wholesale prices to the public. No
minimum to buy and shipping is $7.50 regardless of how much you buy.
Great quailty home & Garden items at very low prices. Products goes
fast, so you better buy while it's HOT.
11-22-2006 @ 8:21AM
Michael Schneider said...
CBS reported last night that the Mattel Extreme Elmo is selling out and mosr stores are empty so Mattel still has good toys and the company is turning aroud.They had to recall some products last week though and that could be a short term problem for them.
There isn't any rule saying toy can't buy 2 toy stocks and still be diversified. Just split what you would put into toys into 2 stocks instead of one. That could spread you out too much but has an advantage if you are heading into a heavy selling season as we are in which one stock might do better for unknown reasons or in which there are a lot of takeovers.
Mattel had been looking up until the recall. You can find a synopsis of a recent New York Times interview with Mattel's CEO in the latest (white label) Weekly Stock Digest at Barrelomoney.com.