AOL Money & Finance

Hasbro really likes Q4

More

Readers of this space know that the retail sector is not my preferred investment area, but there are exceptions, and Hasbro (NYSE: HAS) is one.

In general, analysts see flat-to-slightly declining revenue for FY2009 for HAS, due to the "frugal consumer" era in the United States. Still, I'd argue that the forecast could be a tad low.

New product introductions, a decent tailwind from the summer movie season's toy connections, and likely market share gains is selected categories should get shares moving slightly north. A U.S. economic recovery will brighten the picture for FY2010. The First Call FY2009/FY2010 EPS estimates for HAS are $2.10 to $2.13.

Hence, I'm putting Hasbro in the category of a "get ahead of the pack" play, with modest downside exposure, given the reasonable P/E, aided by a tight sell/stop loss.

Stock Analysis: Hasbro is a moderate-risk stock. Consider buying a 25% position in HAS now; then buy another 25% in four months, if U.S. and global economic conditions don't worsen substantially. Under any circumstance, don't buy more than 50% of your HAS position before October 2009. Sell/stop loss if you were to buy shares in this company: $17.

Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.

Symbol Lookup
IndexesChangePrice
DJIA+203.8210,005.96
NASDAQ+49.802,105.32
S&P 500+20.131,066.63

Last updated: November 06, 2009: 03:48 AM

BloggingStocks Exclusives

Hot Stocks

DailyFinance Headlines

Latest from BloggingBuyouts

TheFlyOnTheWall.com Headlines

    BioHealth Investor Headlines

    WalletPop Headlines

    My Portfolios

    Track your stocks here!

    Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

    BloggingStocks Partners

    More from AOL Money & Finance

    WalletPop Headlines