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Non-Tech : JAKKS Pacific (JAKK) -- Ignore unavailable to you. Want to Upgrade?

To: David Howe who wrote (223)9/24/1999 2:33:00 PM
From: David Howe  Read Replies (1) | Respond to of 371
You should definitely listen to the conference call to get the full story, but here's a few notes.

1. They got a great deal. Flying Colors is a rapidly growing product line with great licenses and similar gross margins to JAKK lines. The retailers are similar to JAKK's retailers and the synergies will be beneficial. Without factoring in increases in profitability due to efficiency / synergies, this acquisition will add $.05 to Q4 and $0.30 to FY 2000. Two top managers at Flying Colors will stay with the team and add considerable experience to the team. JAKK has acquired great management skills as well as a great product line.

2. Jakks Pacific is now the 5th largest toy company based on US sales.

3. Jakks Pacific is possibly the favorite vendor of the retailers. There are indications that they are preferred over all toy vendors including Hasbro and Mattel.

4. The THQI / JAKK video games have been reviewed and are virtually the number 1 game in the near future. The games are getting great reviews and the retailers are tripping all over themselves to order them.

5. JAKK recommends that analysts add another $.05 to Q4 in addition to their current estimates based on the prospects for the THQI JV.

6. The TRON has hit some stores and is selling very well. This is a HUGE hit.

7. The interactive action figure will be in stores in a week or two. Also expected to be a big hit.

8. The JakksPacific web site is up and running. It only sells specialty products and the prices should result in some very nice margins. Get in line if you want to buy one of these products because they are specialty, non-stock items only.

9. All JAKK product lines are growing rapidly. WWF, Wheels, Child Guidance, Dolls, Flying Colors, etc. etc.

10. I found no signs of weakness in any product line that was discussed.

11. JAKK guidance is normally very conservative. This time they suggested that analysts raise their estimates. This certainly had something to do with the new $2.47 estimate that just hit the wires.

12. There were no negatives of any kind that I could find. Analysts asked tough questions and came away please with each and every answer.