Ram: I recommend you call the US headquarters in Costa Mesa,
California. The main number is 714-428-2000. Fax is 714-428-2200.
You might want to call Edie Morley directly at 714-428-2035.
Edie used to handle investor relations. Also, you might want
to visit the Playmates Toys site on the InterNet at
www.playmatestoys.com
Playmates is supposed to report its earnings for first half of 1996
(January-June) this Monday. Ask Edie if she can fax you the earnings
results.
As for upside: Playmates is at a very depressed price. They reported
their first loss (about 3 million US, to recall it), since 1987, for
1995. The loss was due to a problem with an associated company
Ideal Loisirs of France) from which they have since disengaged.
That loss excepted, the company is remarkable for its ability
to control costs and inventory. Until 1995, the company
was the most profitable in the business in terms of net profit
per dollar of revenue (about 3x more profitable, by that measure,
than Hasbro or Mattel). I think that, with the arsenal of new
products they have and a decent Christmas shopping season, we could
see a smashing return to profitability. From US24 cents, US50 cents
is not out of the question this year. The other pleasant aspect is that
Playmates grants about 1/3 of its profit as dividend. They even
paid a small dividend last year. The Chans, after all, holds
70% of the company . Their salaries are modest and they don't
believe in selling their stake. Hence, the generous dividend payout.
I have followed this company for many years, and I am quite
excited that they have pulled together all the pieces necessary
for a new assault on exquisite profitability. |
