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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Marc Fortier who wrote (5862)1/25/1999 8:25:00 PM
From: Freedom Fighter  Read Replies (1) | Respond to of 78481
 
>>>What about Mattel? The stock is trading in the $22 to $23 right now. The
recent write-down, due primarily to Toy's R Us difficulties and also to
negative reactions following the proposed merger with TLC, may be a nice
opportunity to jump in. If you look at past history, shareholders of
this company were well rewarded..<<

I just started looking at Mattel myself. At first glance it appears to be a reasonable value at this price based on recent normalized earnings power. It also has sustained a high ROE. It should therefore be worth a premium PE ratio if the current problems are temporary. In this environment it certainly is cheaper than most stocks. When I finish crunching the numbers and looking at the Learning Company I'll get back to the group.

Wayne