Bill: With respect to your last two questions first,
Playmates Toys closed yesterday at HK$1.85 or US$.24.
I would bet against an ADR offering. Playmates' ADR
program was terminated a couple of years ago. I have
heard of no plans to revive it.
Playmates Toys is incorporated in Bermuda. The principals
of the company in HK reputedly all hold Canadian passports.
It is said that the company could withdraw from HK in a
matter of weeks. Playmates long ago sold off its manufacturing
facilities and subcontracts its physical work. Also, a great deal
of production is carried on in Macau. That being said, a number
of its products are made on the Mainland, more than, say,
4 or 5 years ago when MFN status was a grave concern. There
is no question, no matter how one slices it, the 1 July 1997
takeover is of momentous concern to all HK companies. But,
lest we forget, Playmates' competitors- Hasbro, Galoob, Mattel-
are in a pickle, too, should the PRC adopt an aggressive
approach. After all, these competitors rely more heavily
on Mainland manufacture of their toys than does Playmates. A nasty
row between the USA and China over the PRC's botched handling
of HK could spell big trouble for the US toy biggies.
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