Do not underestimate the appeal of Pokemon, nor its longevity.
As Pokemon is in its fourth year in Japan, first year in U.S., and just now entering Europe and Latin America, it's highly unlikely the Pokemon royalties will drop off a cliff after this year. If anything, they'll grow to their maximum over the next two years, and then gradually fade out.
It's a no-brainer that KIDE will blow thru $100 sometime next year, if not earlier. Q4 revenue and earnings expectations are too low, in light of the fact that most of the Pokemon products are just now entering the pipeline, Europe is starting up, and the U.S. movie is continuing to rake in more and more money. Expect the first movie to rake in over $100M by year end, and expect KIDE to earn $2.00+ in Q4, $3.00+ for the year, and up to twice that next year.
I know one thing: at the local FAO Schwarz toy store, Pokemon stuff is the big thing, the local Burger King has been mobbed with kids seeking Pokemon, and Hasbro can't keep up with demand, even after increasing their output several times.
If I were short, I'd be very careful. |
