IMHO it's a waste of time (and probably money) to base one's investment decision about KIDE (or other small-cap/small-float companies) on the direction of the stock's day to day fluctuations. In my many years as an investor I've seen so many different patterns emerge that I do my best to ignore the short-term price trends of stocks with good earnings prospects and concentrate on the fundamentals. And for KIDE, the fundamentals certainly look like they justify a higher stock price.
Specifically:
1) Al Kahn, KIDE's CEO, has forecast that 1998 earnings will exceed $.70 per share, with the 1998 EPS being driven mostly from WCW royalties.
2) In 1999, WCW royalties should increase as a result of the new Electronic Arts WCW video game.
3) In 1999, there will be a full year of Pokemon royalties. And, as indicated in KIDE's latest press release, the TV show is a huge hit, the limited Pokemon merchandise available in 1998 sold very well and there will be big promotional campaigns for Pokemon stuff by Hasbro and others in 1999.
4) In 1999, KIDE will surely do some lucrative Zelda deals.
So, there's a good chance KIDE's 1999 EPS will reach $2 or more and even at a lowly PE of 10 this puts the stock at $20.
But I believe KIDE's stock will go even higher because I'm confident that sooner or later the mass media will pick up on Pokemania and make investors aware that KIDE is a stock play on Pokemon, as well as WCW and Zelda.
In fact, as long as Pokemon, Zelda and WCW retain their popularity, even if Al Kahn cashed in a few of his options I'd remain bullish on KIDE.
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