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Playmates Toys Holdings, Ltd. is a thirty year old toy marketing and manufacturing company which trades primarily in Hong Kong. Its stock also trades in the USA on the OTC pink sheets. The company is a registered Bermuda corporation. The company- best known for the worldwide hit toy, Teenage Mutant Ninja Turtles(TMNT)- has since diversified and markets both boys' and girls' toys, pre-school toys, collectibles, etc. The company is a leader and innovator in the boys' action figure arena and is well known in the industry for its attention to quality, detail, and affordability. Its "Star Trek", "Primal Rage", "TMNT", "Space Jam", and other lines of action figures and accessories are highly acclaimed by reviewers and consumers, alike. Playmates Toys now markets its own line of the current fad, virtual pets, called Nano Pals. In addition, Playmates Interactive Enter- tainment, a subsidiary of Playmates Toys, has become a very strong presence in the lucrative video game market. A Playmates Games division produces and markets puzzles, games, and similar fare. This year, the company has acquired several promising toy licenses, among them, the master license to Saban's(mastermind of Power Rangers) "All New Captain Kangaroo". In addition, TMNT gets new life from Saban's upcoming TMNT live-action TV series on the Fox Kid's Network and the worldwide release of the film "Turtles IV" wherein a fifth girl Turtle joins the fearless foursome. Presently, the company's stock trades in Hong Kong for about HK$1.40 or about $.18 to $.20 on the OTC pink sheets in the USA. There are approximately 664 million shares extant which places the capitalization at less than US$120, a small number compared to the other toy giants such as Hasbro, Mattel, or even, Galoob Toys. As of 31 Dec 1996, the Playmates Toys records "cash and bank balances" of US$62.348 million and no debt. The company ordinarily pays out about a third of its net profits as dividend to shareholders. Since the Turtle craze of 1988-1992, the company has sought to restructure and diversify. As a consequence profits have declined from those heady days of 1990 when Playmates Toys became the first toy maker ever to book over $100 million in net profits. (It booked $156.4 million that year.) There are no guarantees in the risky, rough and tumble world of the toy business catering to the world's most fickle customers- kids. However, it would appear that, at current price levels for the stock, the downside risk might be limited especially given Playmates Toys strong cash position and what seem to be excellent properties for the year 1997 and following. Playmates Toys, Inc., the wholly owned California based USA sub- sidiary of Playmates Toys Holdings Ltd., operates a nifty web site at: playmatestoys.com Disclaimer: My interest in Playmates Toys Holdings, Ltd. is as a shareholder only; I have no other connection with the company. | ||||||||||||
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