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Thomas & Friends bonus gift sends lead paint back to kids: Thanks but no thanks

During the recent recalls of Chinese toys due to high lead content, toymaker RC2 (NASDAQ: RCRC) has been forced to recall close to 2 million products from its Thomas & Friends product line. In an effort to make up for the mistakes, the toy maker decided to give a little something back to to consumers involved in the recalls, and you guessed it... the gifts were more products with excessive lead paints!

It blows my mind that the company has actually allowed this to happen yet again. The most recent of the company's product recalls took place last week and involved around 200,000 toys, and earlier this summer the toy maker was hit was a massive 1.5 million toy recall, so it makes sense that they would try to give something back to consumers. Unfortunately the gesture of good faith has blown up in their face.

We were alerted to this unfortunate event by The Consumerist where you can also find the official statement from the company regarding this most recent consumer slap in the face:
Unfortunately, the discovery that certain Toad vehicles could be potentially unsafe was made in August, after Toads had been sent as bonus gifts to some families. Many of the Toad bonus gifts are safe, however some may not be. If you received a Toad vehicle as a bonus gift from us, please check its underside for the tracking code 1656OW00 to determine if it is one of the recalled toys.

Continue reading Thomas & Friends bonus gift sends lead paint back to kids: Thanks but no thanks

Analyst downgrades 8-02-07: ADSK, CMG, EDS and MRVL

MOST NOTEWORTHY: Getty Images (GYI), Jackson Hewitt (JTX), Electronic Data (EDS), RC2 Corp (RCRC) and Chipotle Mexican Grill (CMG) were today's noteworthy downgrades:
  • Deutsche Bank cut Getty Images (NYSE: GYI) to Sell from Hold citing deterioration in its core business. Gabelli downgraded Getty Images to Hold from Buy after the company lowered guidance to reflect the changing industry dynamics.
  • Goldman cut Jackson Hewitt (NYSE: JTX) to Sell from Neutral citing near-term risks that include the renegotiation of the HSBC (HBC)/RAL contract, the DoJ/IRS investigation, and decreasing performance in tax.
  • Jefferies downgraded Electronic Data Systems (NYSE: EDS) to Hold from Buy to reflect the company's slowing cash flow improvement.
  • Wedbush downgraded RC2 Corp (NASDAQ: RCRC) to Buy from Strong Buy on the lower sales forecast for 2007. Soleil cut shares to Hold from Gradually Accumulate to reflect uncertainty over the Thomas recall and increased competition.
OTHER DOWNGRADES:
  • Lazard downgraded Kyphon (NASDAQ: KYPH) to Hold from Buy.
  • Credit Suisse downgraded AutoDesk (NASDAQ: ADSK) to Neutral from Buy.
  • CIBC downgraded Marvell Tech (NASDAQ: MRVL) to Sector Performer from Outperformer.
Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

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S&P 500+6.241,093.48

Last updated: November 14, 2009: 03:13 PM

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