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American-made toys on the rebound

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According to The Associated Press, traditional made-in-America toys are making a comeback. "As consumers look for alternatives to Chinese-made toys following a series of recalls this year, dozens of small toy companies are struggling to meet surging demand. Some owners report online sales up as much as fivefold from last year. They're hiring extra workers, expanding warehouses and adding extra assembly shifts."

Perhaps with Wal-Mart (NYSE: WMT) on the skids and Chinese-made toys under the microscope, we are looking at a return to the "Made in America" ideals that Sam Walton espoused, as evidenced by the title of his autobiography, which seems ironic given Wal-Mart's reputation today.

But I would argue that the shift toward American-made toys is good for more than just economic reasons. Shifting away from cheap imported electronic toys toward traditional wooden toys is good for kids' development -- playing with blocks builds a lot more creativity than Gameboy does.

If you're looking to profit from the recall madness as an investor, your options are pretty limited. 1-800-Flowers.com (NASDAQ: FLWS) owns HearthSong and Magic Cabin, but those are a relatively small portion of the company's business. But if you believe in the 1-800 Flowers business' growth story, the stock may be worth a look.

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Last updated: November 25, 2009: 08:36 AM

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