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Non-Tech : KIDE- Low Float, Nice Financials ?? -- Ignore unavailable to you. Want to Upgrade?

To: gerard mangiardi who wrote (29)	11/19/1998 3:49:00 PM
From: BulbaMan	Read Replies (2) \| Respond to of 227

The big money for KIDE will come from product licensing, although the TV show will contribute something. Below is an excerpt from KIDE's most recent 10K, which describes how their licensing deals work. In Japan, they sold $4 billion of Pokemon products in 18 months. KIDE represents Nintendo for all Pokemon merchandise licensing and television distribution throughout the world, excluding Asia. So, the potential market covered by KIDE's deal is at least twice as high the Japanese market. Given Pokemon's popularity, it's likely that Pokemon licensing agreements were at the higher end of the percentages below. But, even using the mid-range percentages, you come up with some incredible royalty revenues for KIDE --- assuming, of course, Pokemania in the U.S. and Europe matches Japan. And, so far, it shows every sign that it will be as big here as there. From KIDE 10K: "The typical licensing arrangement provides for the payment of royalties based upon a percentage of the manufacturer's aggregate net sales, at wholesale, of the products in question. LCI (KIDE's licensing subsidiary) usually retains between 15% and 50% of the owner's licensing royalties, which generally range from 4% to 12% of net wholesale sales."