Combine FURBY, the hot new toy sensation, with a seriously
undervalued small-cap stock and what's the result ?
Grand Toys International Inc (NASD:GRIN)is a distributor of toys
and sports goods which has recently started shipping the new FURBY
toy for the Christmas 98 season and beyond. Presently, the stock
sports a PE ratio of only 2.5 with a price/sales ratio of 0.1 (yes,
that's sales of over $23 per share for the trailing 12 months). The
company also has no long term debt. The company also has SOLE RIGHTS
OF DISTRIBUTION for FURBY in Canada.
Looks to me like this stock has a fair value of $15 - $20 based
on historical valuation of small caps. Even in the presently
undervalued small cap market, I'd still say it's worth $10 plus.
Anyone out there agree ?
Frank |
