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Non-Tech : KIDE a good play to capitalize on Pokemon craze -- Ignore unavailable to you. Want to Upgrade?

To: jgideon who wrote (1215)	10/7/2000 2:34:47 PM
From: zone_boundry	Respond to of 1239

The cash numbers KDE reports are the same that you report, however, all of that cash is not theirs to keep. They stated in one of the conference calls that, as a licensor, they collect fees from the licensee, keep a portion and pass the remainder back to the owner of the property. They do not report how much they keep and in their latest 10-Q (3/31/00 sec.gov they reported $153 million "Due to licensors". Myself I look at their book value as better guide to their real cash position. They don't really many have hard assets. (buildings, equipment, Film inventory < $3 million on 3/31/00) Their book value is $6.82 so I would guess their real cash on hand as around $6.50. If they have earnings north of $1.00 (a guess, nothing more) in 3Q they can be over $7.50. That is a lot of cash to develop properties. Even in Pokemon fades completely (I don't see it yet in my kids or their friends) they still have a great position going forward (Cubix, Marvel, Cabbage Patch, Tama,...) with a reputation in the industry of delivering at least one winner. biz.yahoo.com As for the P/E, here is one comparison (http://yahoo.marketguide.com/mgi/ratio/51820.html) that shows KDE's P/E=5.43 is less than half the sector average of 13.63. I think this reflects the markets view of KDE as a one-trick pony. I recall a number of over 90% of their revenue from Pokemon. They do have a lot of cash coming in and the key is to show they can keep it coming. I think they will. Pokemon has a lot of life left and some of the new stuff will work.