Nobody is buying out Leapfrog...ever..never...Not going to happen...
Ok so for about 4 years I have been watching speculator after speculator posit who/what/when is going to biy out Leapfrog...It's not going to happen. I would LOVE for it to happen so that I could finally get some $$ out of this stagnant stock that never rises on great news and dives on shorts beating the hell out of it. It should be trading in the $12-15 range right now...it disgusts me. But please people enough with the "who should buy Leapfrog" stuff...search the thread history it goes back for years...
agreed. investing in a company based on speculation of a buyout is never a good way to go. However, investing in undervalued, very profitable companies with an established brand has generally paid off. So I'll keep some shares and let them grow to 15 rather than be bought out for that price.
4 years ago leapfrog was a terrible company to buy at a good price.
2 years a go it was a recovering company at a good price.
Now it is an excellent company at a good price.
These are 3 distinctly different scenarios each with significantly different probabilities attached to them with respect to a buyout. That does not even address market conditions - two or three years ago neither Mattel or Hasbro NEEDED LF. I would argue that they now realize they need Leapfrog or they need to develop a strong competitive product.
Shorts are betting the latter. My bet is either Leapfrog get bought or it maintains its market dominance on the competition and expands to more markets worldwide.
I work in international relations and Leapfrog would take off like a firestorm in the Chinese market. Chinese products simply cannot compete with a western product in the ESL market.
And just when you say it couldn't be done, SURPRISE !
I wouldn't own a stock just because it is a possible buyout but you have to understand why people would think that.
1. The PPS is far lower than it's worth ! High growth rate with a very low PE don't due it any justice at all. That means anyone offering the right price could gain controlling shares and still buy the company at a very good price indirectly from the current shareholders.
2. The company has very little debt.
3. LF has cash on hand !
4 LF is THE LEADER in Kids Tablets, sells everything it makes world-wide !
5. Would fill a void for most toy and game companies.
The 3rd and 4 quarters are when things get "hot" for Leapfrog but anything can happen at any time without any notice to the shareholders. Things never happen when you want them to happen and then one day SURPRISE !