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Mattel, Inc. Message Board

  • makingdoe makingdoe Sep 21, 1998 4:03 PM Flag


    Unless there is an upcoming earnings announcement
    to cut earnings, this stock is fairly to undervalue

    at current 1.63 per share or year end 1.92, that
    puts mat at 19.6 or 16.66 p/e ration based on todays
    price of 32.

    a month ago, i asked company if
    they were on target for year end. they said yes. 1.92
    eps times historic aver p/e of 22 gives $42.24

    Has anyone heard of a reduction of earning estimates
    or some impending gloom???

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    • They are as much as the SEC will allow them until
      March 31, 1999. After-which they are lifted from the
      restrictions imposed on them from buying Tyco on March 31,
      1997 based on pooling transaction.

      management knows the value of their company they have
      indicated they will be buying agressively if the share
      price is $38 or below, come march 31.

    • My information sources are solid. Seller? Very amusing.

    • Hi I think this looks like a great buying
      opportunity here,
      Mattel has a modest pe even if earnings
      fall a few pennies
      per share, not to mention
      mattels near 30 percent return on
      equity, that's
      amazing. I just wanted to know if anyone knows
      Mattels is buying back their shares.
      Thank you


    • I would at least wait out the X-mas season.

    • Guess we will all have to waite and see what real
      affect this has on Mat.
      I bought in at 36. Thought
      was a good company and fairly to undervalued at that
      price. This was just before the Toys
      Personally, think the sell off to 28 is overdone.
      earnings were to drop to 1.88 and sell slightly below its
      historic p/e say to 19 that puts the stock at

      Right now, i have a 20 percent lose. Didnt know it
      would keep going lower.Buying more at this level would
      not lower my average much. Selling at this point is
      futile too(i think).

      I dont believe i have any
      options but to wait it out.
      I honestly think it "kills
      me" to see it at this price where i could have bought
      more so than having the "paper " lose.
      I certainly
      think it will rebound.
      Your thoughts would be
      appreciated. Best to all

    • Are you assuming the buyer was GEICO? Also, how can you be sure that GEICO wasn't selling? Where did you get your information?

    • Sure there will be some impact - but it will be
      modest and short term. My daughters want certain
      Barbie's this Xmas - do you think they care where I get

      They will most likely earn $1.90 to $1.95 this year.
      Over the next five years thus number can easily
      double, and double again over the next five years. For 15
      - 16 X earnings, this very fine company is a

      300,000 share block crossed by SSB. Buyer = Geico.

    • Mattel Shares Fall on Concern Toys `R' Us Will
      Hurt Profit

      El Segundo, California, Sept. 23
      (Bloomberg) -- Mattel Inc. shares fell for a second day,
      tumbling as much as 8.6 percent, on concern that inventory
      cutbacks at its largest customer, Toys ``R'' Us Inc., will
      hurt profit.

      Mattel, the industry leader with
      brands such as Barbie and Hot Wheels, fell 2 3/4 to 29
      7/16 in late trading of 3.44 million, more than double
      the three-month daily average. Earlier, the shares
      touched 28 1/4.

      The shares have fallen 12 percent
      since last week, when Toys ``R'' Us said it would take
      a third-quarter charge, close stores and fire
      employees to reduce costs and compete with lower-priced
      rivals. In February, Toys ``R'' Us also said it would
      eliminate about $250 million in inventory this year to cut

      ``Toys `R' Us dropped another bomb, and
      there is nervousness of Mattel's ability to deliver
      numbers based on Toys `R' Us's inventory problems,'' said
      analyst Hayley Kissel of Merrill Lynch & Co., who has a
      ``medium-term buy'' rating on Mattel.

      Analyst Margaret
      Whitfield at Tucker Anthony Inc. cut her rating on the
      stock to ``market outperform'' from ``strong buy.''

      Executives from Mattel are scheduled to meet with Toys ``R''
      Us executives tomorrow to discuss the retailer's new
      store formats and how the company will work with its
      vendors, analysts said. Toys ``R'' Us will also meet with
      No. 2 toymaker Hasbro Inc.

      Inventory cuts at
      Toys ``R'' Us means even fewer orders of Mattel's
      brands, which include Fisher-Price toys and Tyco remote-
      controlled cars. In the second quarter, Mattel said
      declining orders reduced sales by about $78 million.

      Shares of Mattel, based in the Los Angeles suburb of El
      Segundo, California, have lost 28 percent of their value
      since it said Toys ``R'' Us bought less merchandise,
      which hurt second- quarter earnings. It was the second
      consecutive quarter hurt by declining sales at Toys ``R'' Us.

      15:45:01 09/23/1998

    • I didn't see the announcement by toy, I'll check it from here when I leave. to make dough chech out YARC on the nasdaq. I've doubled in three days.

      • 1 Reply to Ilink_1
      • Called the company yesterday.
        Seems the
        latest news from Tot's r' us has hurt Mat.
        Right now
        , the "perception" is maybe they wont buy the toys
        from Mat.
        Company says they dont see that at

        But, they are not sure right now how the latest news
        of the inventory write down will affect mat , if at
        He said will have to wait and see if there is any
        affect, but again said for second half they should be on

        Did say that several analyst dropped earning
        estimates from 1.95 to 1.90, but i havent seen any
        estimates changed yet.

        If anyone else has info,
        please print it. thanks

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