CJ: You have asked the $64,000 question. Granted, there are
over 660 million Playmates Toys shares outstanding. But, at
the current HK price of about HK $1.91 (ca. US$.25), the
market capitalization is a mere US$165 million. For comparison's
sake, we have Hasbro with a market cap of $3.7 billion, Mattel
$7.5 billion, and, even, Galoob claims $254 million.
Of course, Playmates is no Mattel or Hasbro, but the lowly value
the market places on this company stretches credulity. I have
wrestled with this riddle for some time. There is the Hong Kong/
China factor depressing the shares. There is also the fact that,
while the toys are well known to the North American market
(by far Playmates' largest market), the company is not. Most
N. American consumers, I daresay, do not even know Playmates
is a free trading public company. If Playmates shares were listed
in the USA or Canada, my surmise is that the price of the shares
would easily double or triple. That being said, the line-up for
1997 looks most impressive. If the company lands a piece
of the Star Wars' license, it would certainly increase the profile
of the company in the USA and might generate some Wall Street
interest. As it is, I would like to know the name of one analyst
in the USA who follows this company. Their heads are buried
in the sands of Hasbro, Mattel, and Galoob. Meanwhile,
Playmates may well be the real hidden gem. |
