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Is Hasbro's Recent Dip a Healthy Correction?

Toymaker Hasbro Inc. (HAS), was first discussed on June 22, 2009, at a price of $24.30. This autumn it tested major psychological resistance at $50, before pulling back, but I still like the shares at this juncture. Here's why:

Look for Hasbro's revenue to rise about 4% to 6% in 2011, as toy sales accelerate from 2010's likely modest 2% to 2.5% rise. The frugal consumer era in the United States continues, but new product introductions, and adequate performance by established brand (Playskool, Nerf), will satisfy investors, for now.

Continue reading Is Hasbro's Recent Dip a Healthy Correction?

Mattel: Hot Wheels, hot stock?

Last week, I looked at toy maker, Hasbro (NYSE: HAS). Today, we turn to toy maker Mattel (NYSE: MAT), which is being recommended by Jocelynn Drake.

The analyst with Schaeffer's Investment Research notes, "Mattel skipped into the earnings spotlight; second-quarter net income jumped 15.2% to $43.5 million, or 11 cents per share, with sales for the 3-month period up 6.5% to $1.02 billion."

Revenue for the second quarter, she notes, was boosted by favorable exchange rates and sales growth for the firm's Barbie and Hot Wheels toys, which rose 6% and 20%, respectively.

She explains, "Heading into the earnings report, investors were extremely skeptical of the shares. Schaeffer's put/call open interest ratio has risen to 0.77, which is higher than 84% of all those taken during the past 52 weeks."

Continue reading Mattel: Hot Wheels, hot stock?

Symbol Lookup
IndexesChangePrice
DJIA-89.2312,801.23
NASDAQ-23.352,903.88
S&P 500-9.311,342.64

Last updated: February 11, 2012: 12:12 PM

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