2 nd investment club meeting
Advertisement
This presentation is the property of its rightful owner.
1 / 10

2nd Investment Club Meeting 9/22/2006 PowerPoint PPT Presentation

FedEx estimates that U.S. gross domestic product for the rest of 2006 ... WWE. Partnership for video games such as WWE SmackDown, WWE RAW, WWE WrestleMania ...

Download Presentation

2nd Investment Club Meeting 9/22/2006

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


2 nd investment club meeting

2nd Investment Club Meeting

9/22/2006


Brief commentary

Brief Commentary

  • FedEx estimates that U.S. gross domestic product for the rest of 2006 will growth at 2.7%

  • Intel

  • ISRG

  • Drugstores

  • XMSR

  • Oil


Jakks pacific

Jakks Pacific

JAKK

9/22/2006


What does jakks pacific do

What does Jakks Pacific do?

  • Sells all types of toys in the following markets:

    • United States, Europe, Australia, Canada, Latin America, and Asia

  • Exclusive Contracts:

    • WWE

Partnership for video games such as WWE SmackDown, WWE RAW, WWE WrestleMania

Nickelodeon, Disney, and Marvel


2nd investment club meeting 9 22 2006

  • Random Products

    • Dog treats that remove tartar

    • TVGames for young kids

      • http://www.jakkstvgames.com/

    • Stationary

  • Benefits of wide product range?

  • Sales

    33% of Sales are from Wal-Mart


Industry overview

Industry Overview

  • Very cyclical and up to consumer whims.

  • Huge reward but of course if there is a huge reward there is a considerable amount of risk involved


Potential growth

Potential Growth

  • Earnings Yield (EBIT/Enterprise Value)

    107.77M /487.67M

    =22%

    The stock is trading at a discount relative to its earnings. We should take advantage of this great value

  • Added Bonus:

    -High Return on Capital

    -PEG Ratio (5 yr expected):0.74


Does this fit in our portfolio

Does this fit in our Portfolio?

  • Yes, exposure to small Cap.

    • More Risk Involved

  • Currently overweigh in Large Cap


Risks

Risks

  • Lack of brand name

  • Cyclical ~consumer spending

  • Fed tightening

    But... Jakk has a current Ratio of 3.61

    • The Good

    • The Bad


Proposal

Proposal

  • Buy $5000 of Jakks Pacific (about 280 shares)


  • Login