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As expected, toymaker Hasbro Inc. (HAS), which I first wrote about on June 22, 2009, at a price of $24.30, has powered ahead, aided by a better-than-expected December quarter, and a revenue outlook that's more-than sufficient for today's reserved times. Note: I consider Hasbro to be a high-risk stock not suitable for low/moderate-risk investors.
Hasbro is a toy sector survivor. New products, a strong performance in the interactive toy trend, and an improved product mix have positioned HAS for the economic recovery. Also, Hasbro's strong relationship with its major retail customers is another strategic plus.
Add market share gains, and an improving balance sheet to the above, and one can see why Hasbro's stock has advanced smartly since June 2009.
The First Call FY2010/FY2011 EPS estimates for HAS are $2.52 to $2.99. Each EPS estimate looks slightly low, according to my analysis.
Technically, Hasbro's stock is strong -- an uptrend, but it is slightly overbought short-term, having hit a top Bollinger Band at about $37. Hence, a good tack would be to wait for HAS to pull-back slightly before considering the shares.
2010 Outlook: I view Hasbro as a long-term play, but if investors are looking to sell HAS within the year, it's probably best to take your profits after it rises to $43-44, if it fails to rise above $45.
Stock Analysis: I consider Hasbro Inc. to be a high-risk stock. If an investor has already purchased the company's shares, I'd hold them. If not, I'd consider buying a 25% position in HAS now; then buy another 25% in one month, if U.S. and global economic conditions don't worsen substantially. Under any circumstance, I wouldn't buy more than 50% of my HAS position before April 2010 and I'd put a sell/stop loss at $24.
Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.
The First Call FY2010/FY2011 EPS estimates for HAS are $2.52 to $2.99. Each EPS estimate looks slightly low, according to my analysis.
Technically, Hasbro's stock is strong -- an uptrend, but it is slightly overbought short-term, having hit a top Bollinger Band at about $37. Hence, a good tack would be to wait for HAS to pull-back slightly before considering the shares.
2010 Outlook: I view Hasbro as a long-term play, but if investors are looking to sell HAS within the year, it's probably best to take your profits after it rises to $43-44, if it fails to rise above $45.
Stock Analysis: I consider Hasbro Inc. to be a high-risk stock. If an investor has already purchased the company's shares, I'd hold them. If not, I'd consider buying a 25% position in HAS now; then buy another 25% in one month, if U.S. and global economic conditions don't worsen substantially. Under any circumstance, I wouldn't buy more than 50% of my HAS position before April 2010 and I'd put a sell/stop loss at $24.
Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.
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