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Non-Tech : KIDE- Low Float, Nice Financials ??

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To: Bo Didley who wrote (117)12/1/1998 8:42:00 PM
From: BulbaMan  Read Replies (1) of 227
 
In KIDE's Q3 earnings report press release, CEO Al Kahn forecast that KIDE's 1998 full-year EPS would exceed $.70. Since KIDE's EPS for the 1998's first 9 months was $.22 on diluted shares, $.48 for the 4th quarter would bring 1998's full-year EPS to $.70. But Al Kahn said "exceed" $.70! And Kahn's prior EPS forecasts have been conservative -- he raised his forecast from $.50 in the Q2 press release to $.70 in the Q3 press release.
So, I think KIDE's Q4 EPS could be quite a bit higher than $.48 and full-year 1998 EPS could be quite a bit higher than $.70. Right now, it looks like KIDE's royalties are being driven by WCW licenses, which were likely given a nice boost by the Jesse (The Governor) Ventura publicity. And if they book meaningful Pokemon revenues in Q4 and
sign any licensing deals for Zelda that bring in upfront money in Q4, Kahn's 1998 forecast will really look conservative. Also, the company has the flexibility to adjust their quarterly EPS up or down to some degree by the amount they deduct for amortization of their "capitalized film cost." However, since Al Kahn's forecast was for 1998 EPS to "exceed" $.70, it's virtually certain KIDE will indeed exceed $.70 by a nice margin.
What about 1999? To a large degree, this depends on whether Pokemon products sell anywhere near as well in the U.S. as they did in Japan. If U.S. Pokemania comes close to what it was in Japan, as I indicated in an earlier post (see link below), KIDE could achieve as much as a $3.50 EPS for 1999. But even if KIDE made half that amount, the
stock should easily double to $25.
exchange2000.com
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