1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies

Re JAKKS Pacific Inc JAKK - Value with a catalyst or value trap

February 24, 2012

OK, this is senseless. You are just making up numbers so you can make up more numbers to arrive at values like you are creating a CDO. First, Jakks is nothing like the other toy companies in the group. Jakk's doesn't have any brands which is why their margins are much lower. No Barbie. No Ken. No copyrights. They license everything they sell. Without disclosing this core fact all other analysis becomes pointless.

So what is Jakks? Jakks is outsourced manufacturing and distribution for copyright holders. The don't invent Mickey but they make him in Asia and negotiate with Walmart to sell him in the US. The reason Jakks does this is big brands like Disney don't want to burden their organization with these jobs so they give it to Jakks, take a guarantee and a percentage, and force Jacks margins lower. Jacks takes the risk and does the hard work.

And revenue isn't falling its plummeting. It is not open for question whether young kids are using electronics and the Internet, they are now and will only do more so in the future. You should have started the article with the ending where you say you wouldn't invest in Jakks. It would have saved everyone some reading.

Rating: 0.0/5 (0 votes)


Please leave your comment:

More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

Performances of the stocks mentioned by

User Generated Screeners

sbeccuegf10YR 10% BOOK
sbeccuegfBANKS 10 ROE
stewloewySL-Default Template
rmaluskiOE + Div Growth Hold List
pbarker4638 Profitable Quarters
vvalsecchiGuru Screen
pbarker4610 profitable years, 0% Yield
jont017Low Ebitda/EV
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)