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Non-Tech : GRIN (Grand Toys International Inc) -- Ignore unavailable to you. Want to Upgrade?

To: WWS who wrote (8)	11/12/1998 3:41:00 PM
From: Frank McVerry	Read Replies (3) \| Respond to of 495

Great link ! Thanks, Bill. Let's see what Furby might be worth to GRIN; here's my back-of-envelope calculation. Canadian population 30M Target market 3M (toy is for children 4-11, assuming flat demographics, 1 per child - some will get none, others will get more than one plus other age groups will also buy) Retail value $120M GRIN sales $60M (assuming 100% mark-up by the retailers) GRIN gross-profit $24M (GRIN has done about 39% - 41% gross profit over the past 3 years) Bottom-line net profit $2.46M (using 4.1% profit margin for GRIN) That comes to about $1.64 in net earnings per share. Now, they're not going to do that over the Christmas quarter, it will probably take several quarters but this would represent a huge boost to their earnings (they have a trailing $0.87 per share, pre-Furby). After, they finally sell those ? Furby2 perhaps ? Looks like this one toy can more than sustain the business... and they do a lot of other business, too. Comments anyone ? Frank