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

To: Frank McVerry who wrote (75)	12/2/1998 1:36:00 AM
From: Frank McVerry	Read Replies (1) \| Respond to of 495

The Character Group The Character Group, a British toy distributor today announced bumper year-end profits showing growth of over 70% on earnings compared with 1997. Here is a link to more information: fool.co.uk The Character Group has many similarities to GRIN. Although somewhat larger (market cap $100M and GRIN's cap is $12.8M), they import toys from the US and Asia and make heavy use of license agreements (including the Disney character licenses which GRIN also owns). Also, like GRIN they have recently diversified into non-toy goods and have license agreements with Hasbro through a formerly-independent company (Galoob). They also have almost zero long-term debt and finance their purchases with short-term bank loans until they receive payment from their customers. Their PE ratio is now down to 13 following the earnings report. The Character message board makes for interesting reading too, and helps to shine some light on the dynamic relationships between distributors, their suppliers and their customers. The hints being made by GRIN management on their possible future expansions become more understandable - defensive yet threatening ! Perhaps some speculation is required here - for later posts. Here are some of my thoughts.. * The Character management in their annual report, described their business as 'extremely difficult domestic and international trading conditions' yet they did not have to live with a weakened currency as did GRIN over the past year. How well are these distributor businesses going to do when 'trading conditions' are normal ? * They are a much bigger company than GRIN yet they are expecting another 33% growth in '99 - it's always easier for smaller companies to grow faster. * They don't have Furby ! Happy reading ! Frank