There is a mini-baby boom going on, with a lot of kids out there with unprecedented access to their parents money.
JAKKs has a good spectrum (Child guidance to WWF) from
toddlers to the pre-teens covered.
When they first gained attention, it was with Power Rangers and WWF. Even after the Power Rangers have cooled, they managed to grow through buying quality companies.
This is the 'Cisco' model, with scaled earnings coming from the smaller, nimble, innovative companies that are engine of growth.
Believe that the company is a portfolio of brands and not just tied to any one product line.
Secondary will give company additional cash to negotiate other ventures (partnerships, licenses, channels, web-sites, shipping, overseas expansion).
Traditional toy licenses linked to McDonald/Burger King/Movie are very expensive (advertising), and not guaranteed to succeed.
So far JAKK has grown quietly without losing sight of growth potential by accquiring quality brand names.
Secondary or split does not change growth, other than introducing additional liquidity. |
