BNDCY - Bandai Co., Ltd. Message Board

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Non-Tech : BNDCY - Bandai Co., Ltd.

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To: KS who wrote (14)	5/1/1997 12:29:00 PM
From: Kirk Pearson	of 225

Hi Kay, I saw a story on CNBC this morning showing the Tamagotchi press conference at the Manhattan FAO Schwarz, complete with someone dancing around in a tamagotchi suit :-) FAO said they will start selling the tamagotchis today (which we already knew). Someone from Toys 'R Us was also interviewed and said he test-marketed tamagotchis at a store in California a few weeks ago to guage the potential market here. All the shipments he ordered sold out within 1-2 days. Looks like this craze is going to be BIG! I think we'll see lots of news stories all over the place in the next week or two about "the biggest toy craze since Tickle Me Elmo," if for no other reason than that newscasters like to say (and mispronounce) tamagotchi. Unfortunately, Bandai itself doesn't look too financially healthy and I haven't been able to find out what percentage of its business is made of tamagotchis. Also the ADR has near-zero liquidity here since I started watching it last month. Finally, Tiger Electronics is already giving Bandai competition and Bandai hasn't even mass-distributed its product yet. That can't be good for Bandai's margins -- unless this craze is so big that there will be enough business for all manufacturers. I guess I wasn't clear in my earlier post but I don't plan to buy any BNDCY at this time. I am going to watch it over the next few weeks and see if it turns into a momentum play. If that happens I might buy in for a little while. I can't see a good long-term investment in Bandai right now, though. I am re-reading Peter Lynch's "One up on Wall Street" (my favorite stock investing book), and it's tempering my "irrational exuberance" for companies that haven't proven themselves to be a good deal. Take a look at my portfolio (http://www.nyx.net/~kpearson/invest.html) and you'll see why my exuberance needs some tempering :-) Good luck if you jump in on this ADR! Kirk P.S. My Lynch-colored glasses have seen a stock that is at the top of my to-buy list: VANS. This company has been making cool shoes for alternative type kids (or all ages) for almost 3 decades, and now it has branched out into clothing lines and snowboard boots. My college-age brother-in-law says everyone on his campus is wearing Vans these days. The snowboard boots appear to be selling extremely well. The company has been growing at 30-40% a year (http://biz.yahoo.com/finance/97/03/25/vans_1.html) for the past few years, but the stock has been dragged down with the athletic shoe industry. The trailing P/E right now is 14. Of course, there is a group here discussing it: Subject 8289.

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