| An SI Board Since September 2001 |
| Posts |
SubjectMarks |
Bans |
Symbol |
| 20 |
2 |
0
|
KDE |
|
4Kids Entertainment (NYSE: KDE) is the company responsible for the frenzy of Pokemon in the Untited States, and they have made a lot of money from licensing fees of the Pokemon related products (toys, shoes, games, clothing, Pokemon cards... YOU HAVE TO CATH THEM ALL, you know). Stock price went up to $90 per share in 99, but then cooled off to $8 plus change when Pokemon leveled off, below its cash value of approximately $10 per share.
Last quarter ending June 30, 2001 was a "tough" one for them, only making $0.24 per share. The company has no debt, more than $100 million in cash and equivalent. They only have 13 million shares outstanding, ~ 10 million floating. Stock price is currently in the tweenties (very strong price movement in the face of a tough market overall).
The best part about this company is that, while Pokemon is leveling off (not as hot as last three years that resulted in 300% revenue growth for the company, but still a good source of income), the company has several hot show products in the pipeline. One is the Cubix for Everyone premiered in Aug 2001, the other is Yu Gi Oh to be launched on Sept 15, 2001. Yu Gi Oh is another show from Japan, like Pokemon, but it was said that its commercial success was even better than Pokemon in Japan. I am not counting the same success as Pokemon, but I feel a moderate expectation may be fufilled.
If you have young kids in your family under the age of 11, you will know Kids WB (Warner Brothers), Pokemon, Cubix, and soon Yu Gi Oh.
I found this stock when I was looking for "exciting businesses during a dull year." Now I am glad I know it and would like to share with you, and hopefully we can have some discussion started here on SI. I like the story of this company, its product offerings in the pipeline, its strong balance sheet, the small float size (a small size goes a long way), relatively unknown story, and their potential earning abilities.
|
