TOY - Toys 'R' Us Anz
- Thread starter BraceFace
- Start date
Any opinions ?
This has come up on my radar, just about on 12 month lows but with a very good yeild of over 6% fully franked.
Whats the problem ?, has fallen over 50% from its highs a few years ago.
Was in some kind of takeover talks about 6 months ago, but been going backwards ever since.
This has come up on my radar, just about on 12 month lows but with a very good yeild of over 6% fully franked.
Whats the problem ?, has fallen over 50% from its highs a few years ago.
Was in some kind of takeover talks about 6 months ago, but been going backwards ever since.
Fun is on Children's business. I know these children stuff's margin is very big.
But I do not have children, so I do not know whether FUN is strong brand in children's business. I would appreciate anyone's opinion from a customer or provider's point of view .
But I do not have children, so I do not know whether FUN is strong brand in children's business. I would appreciate anyone's opinion from a customer or provider's point of view .
Fun is a distributor of children's toys, educational products etc. A lot of Fun's problems have come from dilution of shareholding through the Judius purchase which they bought from ABC Learning. ABC Learning got quite a bit of script in Fun which means it owns a fair chunk. Poised for a take-over bid maybe who knows. Maybe when Sp runs down a bit more. Theoretically Fun should be performing quite well due to influence of A$ being high as they can buy more for their buck. As to margins on the business Fun is a retailer at a distribution level so Margins arn't high. I think from memory operating margin is 7% and Net profit margin is 3%. Earnings have been taking a hamering not because revenue is down but due to dilution of Judius purchase increasing shares on offer.
UMike
Klutzing in Thai
- Joined
- 16 January 2007
- Posts
- 1,436
- Reactions
- 1,756
Dropped to around $1.13 before shooting up to $1.18 at the close of Friday.
Now in a trading halt.
Any takers to suggest why this trading halt was put in place?
Now in a trading halt.
Any takers to suggest why this trading halt was put in place?
With the state of the toy industry lately, there's more chance of bad than good news. They should know something about christmas sales about now.
But at least it doesn't sound like a toy recall...
http://sa.iguana2.com/cache/a1078232d81d4daa2d46d51e2f208aee/ASX-FUN-287824.pdf
But at least it doesn't sound like a toy recall...
http://sa.iguana2.com/cache/a1078232d81d4daa2d46d51e2f208aee/ASX-FUN-287824.pdf
You would have thought with the strong $A and them importing most of there product things would be looking good, they also said in August that sales were good and they were looking at entering the US market.
On the flip side the share price has been going one way and that’s down, they have had there problems as well so all doesn’t bode well for whatever guidance as to there earnings etc tomorrow.
I bought a small parcel at $1-24, so will watch with interest, but agree with niknah, any announcement is more likely going to be bad rather than good.
Fingers crossed im wrong.
On the flip side the share price has been going one way and that’s down, they have had there problems as well so all doesn’t bode well for whatever guidance as to there earnings etc tomorrow.
I bought a small parcel at $1-24, so will watch with interest, but agree with niknah, any announcement is more likely going to be bad rather than good.
Fingers crossed im wrong.
UMike
Klutzing in Thai
- Joined
- 16 January 2007
- Posts
- 1,436
- Reactions
- 1,756
I'd have thought the import condition would lift their SP also.
A takeover perhaps.
We'll find out tomorrow I 'spose
As i guessed the news was not good 
I think the technical term is it got "Rogered", down about 30% on the open.
Announced that earnings would be about 25% down on previous guidance, i was going to dump but ABC have a large stake and this may make a takeover that has been on the cards rather attractive plus i only bought a few with a long term view in mind.
I think the technical term is it got "Rogered", down about 30% on the open.
Announced that earnings would be about 25% down on previous guidance, i was going to dump but ABC have a large stake and this may make a takeover that has been on the cards rather attractive plus i only bought a few with a long term view in mind.
Good point ROE
I just read smart investor magazine which had an article on FUN.
They seemed to think FUN had ironed out all its previous problems. They also mentioned which was interesting they believe a decrease in discretionary income won't necessarily decrease toy sales. They mentioned that most parents would sacrifice other spending so their kids can still enjoy toys, etc. Most probably due to the "nag" effect.
Do you guys believe FUN is good value now after decreasing 30%?
Cheers
Dave
I just read smart investor magazine which had an article on FUN.
They seemed to think FUN had ironed out all its previous problems. They also mentioned which was interesting they believe a decrease in discretionary income won't necessarily decrease toy sales. They mentioned that most parents would sacrifice other spending so their kids can still enjoy toys, etc. Most probably due to the "nag" effect.
Do you guys believe FUN is good value now after decreasing 30%?
Cheers
Dave
I read that article as well and I dont agree with Toys is the last thing they let go.. I'm a parent and toys is the first thing I let go before education, school fees, piano class, swimming lessons, food, holiday etc..
and that seem to be the case why else lower profit
?They got TV and various other entertainment kids dont really need a lot of toys.
I dont know about you but look at FUN even though it drop a bit I dont think it's a good business going foreward by looking at their ROE and margins..
their ROE is steadily decline that usually indicate a business is not well run or
profit margin is getting a bit if a hammer.
That enough to keep me away
for now . unless it drop down to 40 cents or something ..
- Joined
- 25 September 2006
- Posts
- 9
- Reactions
- 0
What to do with this stock now?Sadly i own it.Should i hang on for a takeover bid or just dump it fast.
- Joined
- 30 March 2006
- Posts
- 285
- Reactions
- 0
Mattel may take a hit from the all the recalls. Hasbro... transformers has done well but I dont know if thats their biggest line. The event with the popular bindez toy will hurt them too.
UMike
Klutzing in Thai
- Joined
- 16 January 2007
- Posts
- 1,436
- Reactions
- 1,756
There is always the parents and Uncles ;-)With increase mortgage repayment people has less $$$ to spend on toys
so natural affect earning in these stocks.
and the people who don't have the mortgage their kids all grown up
Very disappointed. Bought in again at 80c Hoping this is an over reaction.
Remember the dividend payment is around 11% atm.
tough call, it is up to individual what they want to do with it..
If I was you, I hold on to it till close to financial year and if it's not making any improvement, dump it and offset with with your current year capital gain to save tax.
UMike
Klutzing in Thai
- Joined
- 16 January 2007
- Posts
- 1,436
- Reactions
- 1,756
WestPac hit it with a Sell/avoid also it listed as N/A to vital information as Dividend, PE, EPS, ect....
I'm holding for now.
Do you really believe the dividend will be maintained after this profit downgrade? if they do they are nuts. The dividend yield means nothing at this point in time in my opinion.
