Mattel Inc's quiet 18% run in the last month
With the market falling, there's one company that managed to quietly run up 18% in the last 30 days, that would be Mattel, Inc. (Public, NYSE:MAT). After being butchered in the press last year for a total of 21 million toys recalled and lead paint this and that, MAT is making a comeback.
Here's a look at Mattel over the past year:
Mattel's President made an appearance on the Nightly Business Report last night, here is what he had to say - click for full article:
NEIL FRIEDMAN, PRESIDENT, MATTEL: Commodities are going up. Labor is going up, you know, all the things, transportation -- all the things that we know about are going up, so there will be some increases in toy prices. However, 80 percent of our toys still are under $30 and Matchbox and hot wheels cars are still $0.99, so there's always something for the consumer to buy that's popularly priced.
Earlier this month Mattel's CEO Robert Ecke said he does not expect a repeat of last year's recalls of millions of Chinese-made toys and is "optimistic about 2008" despite an economic slowdown.
Despite posting a better-than-expected profit for the fourth quarter -- earnings rose to $328.5 million from $286.4 million a year earlier -- operating profits fell as a result of increased costs, notably from the extensive recalls. Mattel, Inc. reported Q4 EPS of $0.89, 16 cents better than estimates. Revenues were $2.19 billion vs $2.13 billion consensus.
Robert Ecke went on to say:
"I am concerned about commodity costs. I am concerned about commodity costs and labor costs in Asia. The Chinese currency is appreciating, so I think it will be a challenging year for costs this year.
As a result we will work very hard on reducing our controllable costs, not related to commodity costs, and we will have to raise our prices as well.
People still buy toys, no matter. They may have tough times themselves, may cut back on spending on very large items such as vacations, for example, but children will always have a good Christmas"
Add to it that Mattel Board of Directors authorized the company to increase its previously announced share repurchase program by an additional $500 million.
Investing is tough these days trying to find a stock that won't fluctuate + or - 2% on a given day, so Mattel may be worth a shot under $20.
Disclaimer: The Author does not have any positions in MAT.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Citizen Militia Experiences Explosive Growth Following The Last Election | ZeroHedge
- SAUT: Fade the Fed, Markets Now Dependent on Fiscal Policy | Financial Sense
- Global LEIs and Technicals Point Up | Financial Sense
- The Reflationary Window: Open How Wide For How Long? | Financial Sense
- Weekly Market Recap Feb 26, 2017 | FundMyMutualFund
- N. Korean Nukes Exaggerated; More Questions About American Nukes Too | ZeroHedge
- Gold, 10-Year Bond, Dollar Into FOMC (Video) | ZeroHedge
The most relevant financial news and articles from the Internets
- Check out the all-American, made-in-Italy Jeep Renegade SUV (FCAU) | Business Insider
- Trump is the champion of the shallow state — and that... | Business Insider
- America's Best Young Entrepreneurs 2011 | BusinessWeek
- The director of the Oscar-winning Pixar short reveals the... | Business Insider
- Germany sees nearly 10 attacks against refugees and migrants... | Business Insider
- Oscar nominees receive a $100,000+ swag bag — here's what's... | Business Insider
- The man who broke records by winning 74 games and $2.5 million on... | Business Insider