Anything is possible, but anyone looking at value stocks might hit LF with a screener. We will be fine in the long run if we keep the revenue growth, increase cash position, and deliver more EPS. I think LeapFrog knows what they are doing and we are in a good sector with an economy getting better. There is also a movement of parents buying educational toys vs. the standard GI Joe or Barbie.
The thought was the leap pad would start to suffer with lower priced tablets. LeapFrog is still hovering around 10% revenue growth per quarter and it doesn't appear to be slowing. They are increasing product offerings and even getting into online apps. I think we have a sector shift to educational toys.
My fair valuation is around $15. They have $120 million in cash an approaching $200 million in 2014. That is good for product expansion, buybacks, or whatever needed. They also are doing this without debt.
Usually buyouts run in a 20%-30% premium range. That is not good for LF considering we are running at a 50% discount to other toy companies. If LF can get closer to $15 it would be nice hearing buyout talks.
I'm happy to see us running over $9.50, it is still disappointing that the share price isn't reflecting $120 million in cash, no debt, near double digit revenue growth, and the p/e under 10.
The stock has to business being under $15 let alone $10. I hope we get a short cover rally but I want something more long term like institutions wanting millions of dollars worth of the stock.
Price rising on low volume would actually get bad for shorts. They have near 15 days to cover at low volume. If the selling dries up they are in big trouble.
Hard for me to get excited until we pass $12. $8 is a joke for a company growing and is trading 3 times cash.
a 40% premium would suck! You really think the company is only worth $11.25? I don't want to think about giving away the company for that price. The company is trading only 3-4 times cash value. P/E around 7. Revenue under 1 times. We have near double digit revenue growth expected for the next few years.
I'll think about a buyout when the stock is at $15 and they offer a 30% premium from that point. In my opinion fair value is around $17-$20 range.
Tons of products and hopefully the product offering will continue to grow. I don't think this company is LeapPad only by far even though that is the #1 rated toy.
There are some worries with the lower priced Ipad's that parents will just use those. I think many parents will go after a product that is designed as an educational toy over a traditional tablet.
Good point. Since it is their own books they probably are donating a retail value of $2 million which is probably old inventory anyway. Probably a real value of less than $1 million.
as long as it is good PR that leads to more sales. I would like that $2 million to go to a buyback, but that is the capitalist in me.
I always thought a good acquisition would be Melissa and Doug. It keeps the core business of educational toys and it branches out into the wood toys that will always be popular.
I own a lot of shares of SWHC. I bought my cost basis down to the low $9's. I'm out if that stock every reaches $10 again. I mad because I moved over money that was tied to GNW which nearly doubled. If nothing much is done to SWHC with regulation it might go to $10-11 per share. The problem is once the fear of regulations is gone the sale of guns will drop. It is a little ironic that Obama is so anti-guns and he creates more gun sales.