A month after Mattel's (NYSE: MAT) massive recall of lead-paint contaminated toys, Toys "R" Us is joining the party. The toystore juggernaut is recalling 27,000 Chinese-made paint and crayon sets. The wooden box contains lead, as do some of the paints.
Obviously these toy recalls are bad news for the company's involved -- Mattel and stores that rely heavily on low-cost imported goods. If parents get scared and transition to higher-quality products, these companies will suffer.
That's where 1-800-Flowers.com (NASDAQ: FLWS) comes in. The company also owns HearthSong and Magic Cabin, which could see increased sales if consumers flock to quality. These companies manufacture toys that are more classical and, I would argue, better for kids than a lot of the cheap stuff -- lead paint concerns aside.
The stock has been on a run of late and doesn't look particularly cheap. But the growth in the core flower business, combined with the positive outlook for these subsidiaries, makes it worthy of further investigation.
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Reader Comments (Page 1 of 1)
8-30-2007 @ 8:58PM
Sambo said...
Enough already!!!!!!!!!!!!!!!! Have we learned our lesson yet here in the great U.S? Get smart and ban any future toys, etc. made in "CHINA". They obviously don't give a rat's ass about our safety or health concerns here in the states. So what is the answer, ban their damn products people!!!!! I guarantee I will CHECK where any future products are made especially toys. If they are made in China, back on the ole' shelf they will go, FOR SURE!!!!!!!!!!!!!!!!!
8-30-2007 @ 10:05PM
topgon said...
I believe that ether we should ban the most Chinese products or require each shipment to be proved safe and the importer should be held liable if the unsafe product gets threw.