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Kids Decide on Dolls or Devices - JAKK, Others 70% Off

September 17, 2013 | About:
Sally Jones

Sally Jones

49 followers
Move over Cabbage Patch Kids® and Hello Kitty®. Kids are changing.

Children have a strong preference for electronic devices, according to Stephen Berman, CEO and president of toy maker and action figure licensee, Jakks Pacific Inc. (JAKK). Berman believes that the play behaviors of children have changed so much that new play behavior is at least one contributing factor in his toy company’s declining revenue. Berman commented in a company press release, “We also believe the decline in sales reflects the continuing change in play patterns of children of all ages, who continue to rely more and more on smart devices for their fun and entertainment. As previously announced, this shift in play patterns has caused companies like Jakks to evolve to meet the changing demands of its consumers with technologically enhanced product offerings.”

The GuruFocus 52-week low screener reveals that Jakks Pacific Inc. is hitting a low of 70.3% off its 52-week high, but JAKK is still held by a group of billionaire investors. Here’s a look at Jakks Pacific and two more companies way off high on a 52-week low. These companies are held by numerous billionaires as of the second quarter of 2013.

Jakks Pacific Inc. (JAKK)

Down 70% over 12 months, Jakks Pacific Inc. has a market cap of $109.07 million, and trades with a P/B of 0.90.

The current share price is around $4.89, or 70.3% off the 52-week high of $16.44. The yield is 0%.

Incorporated in 1995, Jakks Pacific Inc. develops, produces and markets consumer products, including toys and related products, electronic products, pet toys and related products, and other consumer products, sold under various proprietary brand names including JAKKS Pacific, Creative Designs International, Road Champs, Funnoodle and others. Jakks is a licensee of several hundred nationally and internationally known trademarks including Nickelodeon®, Warner Bros.®, Ultimate Fighting Championship®, Hello Kitty®, Graco® and Cabbage Patch Kids®.

The company reported net sales for the second quarter of 2013 as $106.2 million compared to net sales of $145.4 million reported in the comparable period in 2012. The reported net loss for the second quarter of $46.9 million, or $2.14 per diluted share, which included charges for license minimum guarantee shortfalls of $14.1 million and inventory impairment of $12.2 million. This compares to net income of $0.2 million, or $0.01 per diluted share, reported in the comparable period in 2012. The company reported net sales for the six months ending June 30, 2013, were $184.3 million compared to $218.8 million in 2012. The net loss reported for the six month period was $74.4 million, or $3.40 per diluted share, according to a company press releases.

Jakks's CEO and president Stephen Berman, commented: “We are disappointed that Jakks has not met its second quarter target and will not achieve its full year 2013 forecast. Sales for the second quarter were significantly below expectations due to a variety of factors. Several retailers, both in the United States and in Europe, are struggling and have substantially decreased their orders. In addition, the poor performance of several of our key properties, including Monsuno and the Winx Club, also contributed to the decline, along with unusually cool weather that affected seasonal toy sales leading to more aggressive markdowns at retail as shelves are cleared for back-to-school products.”

Track share pricing, revenue and net income:

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Guru Action: As of June 30, 2013, there are six guru stakeholders and insider buys.

John Rogers increased his position by 96.16%, buying 380,005 shares at an average price of $10.31 per share, for a loss of 52.6%.

He currently holds 775,191 shares or 3.48% of shares outstanding.

In 12 quarters of holding, he has averaged a loss of 59% on 789,561 shares bought at an average price of $12.01 per share. He has averaged a loss of 75% on 14,370 shares sold at an average price of $19.19 per share.

Vical Incorporated (VICL)

Down 70% over 12 months, Vical Incorporated has a market cap of $109.26 million, and trades with a P/B of 1.50.

The current share price is around $1.26 or 73.4% off the 52-week high of $4.74. The yield is 0%.

Incorporated in 1987, Vical Incorporated researches and develops biopharmaceutical products based on its patented DNA delivery technologies for the prevention and treatment of serious or life-threatening diseases.

Track share pricing, revenue and net income:

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Guru Action: As of June 30, 2013, there are two guru stakeholders and active insider trading.

The top Guru stakeholder is John Rogers who increased his position by 93.26%, buying 2,477,850 shares at an average price of $3.52 per share, for a loss of 64.2%. He currently holds 5,134,817 shares or 5.92% of shares outstanding. His five-year history shows only double-digit losses, averaging a loss of 63% on 5,428,292 shares bought at an average price of $3.42 per share. On 293,475 shares sold at an average price of $3.73, he averaged a loss of 66%.

Atlantic Power Corporation (AT)

Down 72% over 12 months, Atlantic Power Corporation has a market cap of $483.39 million, and trades with a P/B of 0.70.

The current share price is around $4.04, or 73.4% off the 52-week high of $15.18. The yield is 0%.

Incorporated first in Ontario, Canada, in 2004, Atlantic Power Corporation is a power generation and infrastructure company with a well-diversified portfolio of assets in the U.S. and Canada. Its power generation projects sell electricity to utilities and other large commercial customers under long-term power purchase agreements, which seek to minimize exposure to changes in commodity prices.

Track share pricing, revenue and net income:

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Guru Action: As of June 30, 2013, there are two guru stakeholders and active insider buying.

The top Guru stakeholder is Jim Simons who increased his position by 85.5%, buying 487,775shares at an average price of $4.72 per share, for a loss of 14.4%. He currently holds 1,058300 shares or 0.88% of shares outstanding.

In 10 quarters of holding, he has averaged a loss of 54% on 1,058,300 shares bought at an average price of $4.72 per share.





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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 4.2/5 (5 votes)

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