Roughly 5 to 6 weeks ago, my son was introduced to Pokemon from a friend of his. My son was immediately hooked.
I kept this in mind and while taking a day off from work, heard about GRIN's licensing agreement and $2 pop from $7. I then made a mental note to buy some GRIN, check out their fundamentals etc.
I've made purchases in the $14 to $18 range and feel very comfortable even though its depressed.
Why? Per the Vcall it is tracking well with U.S. markets, all things Pokemon are experiencing growth, some more than others (Video's, Cards, first, then evolving to other purchases). The other purchases include plush toys, backpacks, pencils, pens.
I did the numbers and the fundamentals on these items is very large, even with conservative estimates, earnings will be phenomenal.
The issue for me, is GRIN's ability to manage growth effectively, without impacting margins. Per the Vcall they stated they could, but this next earnings report will be reflective of their ability to manage this growth, not in terms of sales or revenue increases, but in terms of SG&A, that will be ahead of the 4rth qtr revenue stream.
Pokemon may/may not be a fad. It is irrelevant to the equation. The key is, is that this is a "Franchise." The length of term of this franchise is the only question or relevance. Clearly, this will last until Christmas. |
