My opinion, when this partnership/buyout happens, I think the company stock will be taken out above book at about $3.50 to $4.00 per share, up to a 100% gain from here. How long can we wait? Another holiday season?
Let the machines, traders and weak hands finish their panic selling. I agree with Value Line who see more years of solid growth for this company, especially given the room for expansion overseas in under-penerated areas. They are debt free, have sturdy cash flow and recently repurchased nearly 5.1 million shares of their stock. They are probably buying back more on this sell off. I agree with Value Line that "those willing to bet on the growth story here stand to be nicely rewarded in time given the recent price pullback." I'm here here for several years with both feet as a long-time value investor.
In my opinion, I think the numbers will be very bad, they will mark down a lot of assets and the stock will drop to the 1's. Eventually they will see the light and partner up or be acquired. Can you wait?
Ad for Craig's list: Who is going to buy Leapfrog? Microsoft, Google, Hasbro, Mattel, Apple? Imagination present, no debt found, better management needed, better product roll out and scale needed. Book value at least $3.50. Chump change for the biggest companies. I'm in here for the wait. Value in an over-valued market.