or $7.7B mkt cap. My estimate of a KBtoys spin
off being worth $2B is way off. This could double CNS
market cap by year end, especially if they spin off the
company to the holders after the IPO. Merrill Lynch was
right, this is worth $60 (plus). Good investing.
Why is this stock dropping so quickly??? Earnings
were a bit better than estimates. The e-toy thing
looks good. Star Wars has to be driving the business on
the toy side. The closeout stores that I have visited
in my area look better than ever. Should I sell now?
Is there a turnaround in the future??
I'm sure that a 300 point drop in the Dow could
any stock. This coupled with deep
softening in internet stocks
robbed CNS of upside
movement with the .com announcement.
only be a short speedbump as CNS is going to
continue rolling to a great year. Growing pains ease
each week. Do Not lose confidence ky_trades.
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New Merrill update (when CNS was $31) says that
the weakness is related to the internet in two
1) Concerns that on line toy sales will cut into
traditional store sales and therefore cut overall margins,
2) alot of players are moving into online toy sales
besides eToys, therefore reducing online valuations
Merrill believes that the online winners will be the
existing players such as ToysRUS and K-B because of their
extra leverage and name brand awareness. Unfortunately,
this will have to play out to see if it holds true.
Also, and the proposed KBToys IPO is 6 months or more
away and in internet mania that's a
Merrill also said that KB was only showing 3-4% same
store sales growth this quarter versus a 5% plan (due
to less than expected star wars sales). However,
they also said that several other divisions were
EXCEEDING their targets and that 2Q earnings were on plan.
They again stated their $60 target and a 1-1 buy
rating. Me, I recently doubled up at $25 and change.
However,this drama may take 9 months to play out...so it
depends on your time horizon if you want to see it
through. Good investing.
Our sources indicate that the Q2 comp sales trend
at KB is consistent with the YTD comp sales reported
at EOM May (+5.8%). While June comps were not as
strong as May, KB is currently cycling a number of
strong LY video game releases the did not have TY
counterparts. July comp sales are, at this point, ahead of
Nevertheless, the sudden downdraft in the stock price is
disconcerting, to say the least. This is clearly a case of The
Street penalizing a bricks and mortar retailer for a
logical, albeit tardy, e-tailing strategy that is
temporarily dilutive, vs. rewarding a no earnings e-tailer
for the same approach.
Toy comps suck and are below expectations! Also
the performance of the OL/BL chain is below some
investors' expectations, especially given the easy YOY
comparison of (9%). The only thing working right now is
And as far as the internet goes, the sales estimates
for the on-line cos. exceed the expected growth of
the toy industry. In
other words, bricks&mortar
lose share, which probably means weak toy comps this
x-mas. Unless it is a blowout x-mas.
(stkpkr00) you are wrong. Toy comps are on company plan albeit on the lower end of the range. Video is down substantially, but core toys holding well and making up on margin what losing in rev.
Well not for me! I don't eat expired cornflakes
apparently shipped back from Japan. Things that can be
bought elsewhere for the same price or better, and you
don't have to deal with rude inbred staff and
management. I could here the banjos playing as I left to call
my broker. Never to return again!!!!