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Non-Tech : Doc Stone's Bierstube und Trading Room

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To: Quad Sevens who wrote (449)11/10/1998 6:00:00 PM
From: David Howe  Read Replies (1) of 638
 
Doc,

What would it take to get you interested in JAKK again? The story is the same. They are within a year or so of the WWF video games. This years earnings have been better than expected. JAKK trades at a PE of about 12 based on 1998 earnings and a PE of about 8 for 1999. Next years earnings look very solid at $1.10 to $1.20 (a 30%+ improvement).

The stock has shown stability (for a small cap). Individual investors are selling out of boredom or to chase KTEL or EBAY. Institutions are buying. Their holdings have increased from 4% a year ago to around 15% as of 9/30/98.

If chasing the high flyers of today is not your game (it's not mine) then take another look at JAKK. Good upside potential with a solid business to back it.

Fiscal year 2000 earnings should be twice what this years earnings are based on the THQI / WWF video game income alone. I don't think that this is the stock to make a quick buck in, but IMO it's a good one to build a substantial position in and wait until the market awards it it's true value.

Please let me know your thoughts when you have time.

Dave
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