I don't know much about The Conservative Speculator either...it comes from Prodigy's Wall Street Edge investor service which is proprietary to Prodigy, it's not on the web.
LOW PRICED STOCKS
Thursday, December 17
[Conservative Speculator]
Action Products (APII) 2 7/8 unchanged. I recommend APII for both mid-term and long-term appreciation. This situation has everything going for it. I visited with CEO Ron Kaplan in his new downtown Orlando HQ 2 weeks ago. I came away with the conviction that this very well run company has exceptional potential.
This is one you should look into before it takes off. Its Space Voyager product is a sure winner, that's confirmed by my chief educational toy marketing consultant - he's our CFO's 7-year old son Clayton Clarkson. The tie-in with QVC and Senator Glenn's spaceventure was a brilliant marketing move.
I like the fact that management divested non-core products. APII's core products have more attractive margins. YTD earnings as a percentage of sales is approaching 10%, exceeding management's strategic goals to date.
This situation not only has the right fundamentals, it's highly undervalued. It's P/E has been between 5 and 6, compared to that of other toy companies, which normally carry a P/E of 15 to 40.
APII's products are diversified among age group,gender, price points, and play patterns. Its portfolio o fbrands is growing through internal development, licensing,and acquisition.
Here are some other things I like:The current trend in the industry is toward toys that
educate. Imaginative marketing and product development. Emphasis on non-violent, educational playthings 98 shaping up to be a banner year.6 consecutive quarters of increased revenues. Market-cap half of annual sales.
The tie with the discovery channel opens up the mass market for APII - I expect that trend to accelerate.
Thursday, December 17
For additional company information, contact: 344Cypress Rd, Ocala, FL 34472-3108; Rebecca Garrett, (352)680-3516; or fax: (352) 687-4961; investor@apii.com;www.apii.com. |
