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Non-Tech : KIDE a good play to capitalize on Pokemon craze

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To: Jim P. who wrote (334)8/20/1999 10:09:00 AM
From: out_of_the_loop  Read Replies (1) of 1239
 
Jim :

I took the $1billion from the following quote:

Such agreements generally call for the licensor to receive from 5% to 15% of retail sales. Mr. Kahn says as licensing agent his company typically earns a commission from 20% to 50% of that royalty. So if Pokemon merchandise were to reach $1 billion in retail sales, 4 Kids Entertainment could earn from $10 million to $75 million. Based on Pokemon's multibillion-dollar sales in Japan, analysts expect U.S. sales to be much higher than $1 billion. Shares of 4 Kids, traded on the Nasdaq Stock Market, were as low as $5 in March but have recently been trading above $50.

I aded the bold since that is what the article said which was specific to your comments. Getting much info out of KIDE has indeed been challenging so if you have different info, it would be great to share it.

I purposefully made my figures conservative and flexible so people could see how to calculate per $billion in retail sales. In addition, I did not factor in the movie separately because I have no info that would give me a way to block it out separately. I actually think the true revenue will be several billion based on the WSJ comments and the fact that the movie will probably be a number one hit and will have immediate derivatives the same and next quarter (home video sales, soundtrack). I think the movie will be a big hit (another probable understatement) because the TV show became the #1 USA kids' show in less than a few months.

I do appreciate your comments. There is not a lot of good info so thanks for yours. I indirectly also wanted to show why a long term short position was not wise. I can't speak for the next few days because that is not how I think, categorize or (LOL) worry about this investment.
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