Important Updates for Investors
Carla Pasternak's Premiere Issue of High-Yield International Just
Released
Income expert Carla Pasternak's debut issue of High-Yield
International covers a Taiwanese manufacturer yielding 9.5%... a
rare Mexican monopoly yielding 13.4%... and other top-performing
investments yielding up to 19.0%.
Government's Biofuel Timetable Could Spell +15,900% Growth
+15,900% growth might seem far-fetched... but it's not. In fact, it
is mandated by law. And I've identified the ONLY stock positioned to
capture this growth.
The
Silver Lining to a Falling Dollar
Despite the U.S. national debt, there is a silver lining for income
investors. This massive spending, combined with movement out of U.S.
Treasuries, is going to take its toll on the dollar, and
international income investors could reap the rewards in the form of
higher dividends. |
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Jakks Pacific (JAKK) Returns +23% in under 4
Months
Published:
April 14, 2008
In
every issue of my
Half-Priced Stocks newsletter, I zero in on some of
the market's biggest bargains. Quite often, there is nothing
fundamentally wrong with these companies, they were simply
ambushed by a "sell first and ask questions later" mentality.
And when investors realize that they may have overreacted, the
shares often recoup their losses -- providing hefty gains for
those with the courage to buy when everyone else seems to be
running away.
That's what led me to Jakks Pacific (Nasdaq: JAKK, $28.72) this
past January. My "Industry Spotlight" segment that month covered
toy makers, an industry that had been widely disparaged
following a series of highly-publicized (and costly) recalls
stemming from faulty products sourced from China. Traders were
also worried that rising costs for resin (an oil-based material
commonly used to make plastic toys) could cut into earnings.
However, while those concerns were valid, they were also
overblown and temporary. Yet, in the span of a few months they
shaved nearly one-third of the value from Mattel (NYSE: MAT),
the company that initiated the recalls, and erased billions of
dollars in market capitalization industry-wide. As for Jakks,
its shares tumbled like a slinky going down a flight of stairs,
falling from a peak above $30 to a bottom below $20.
At the time, I didn't see these issues as a major threat to
either Jakks Pacific or the overall $22 billion toy business. In
fact, based on licensing ties to popular franchises like
Hannah Montana, Pokemon and Dragon Ball Z and
my upbeat outlook for the firm's future cash flows, I calculated
a fair value of $29 per share -- about +23% above where the
stock was trading at the time.
Since then (thanks in part to a blowout fourth quarter that saw
revenues advance +20% and profits surge nearly +50%), the shares
have rallied sharply, finishing this past week at $28.72, a
shade below my
fair value estimate. Meanwhile, the broader market has spent the same
time period in negative territory.
In this month's newsletter, I zoom in on another company that
has been unfairly punished because of temporary fears. My
"Undervalued Stock of the Month" for April is a leading power
producer in China, a nation with an insatiable appetite for
electricity. Yet, despite cozy ties to the Chinese government
and steady double-digit cash flow growth, rising coal prices
have slashed the stock in half in recent months. As a result,
this well-placed firm now offers a yield of 6% and upside
appreciation potential of more than +50%.
To read my complete profile of this exciting firm -- available
only to subscribers -- I invite you to join us at
Half-Priced Stocks. To learn more, please
visit
this link.
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Nathan Slaughter
StreetAuthority Staff Writer
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Investing Doesn't Get Any Easier Than This |
Stock picker Amy
Calistri's strategy is as simple as investing gets -- just one idea
a month designed to make money in today's market. Invest this way
and you don't have to worry about oil prices, automaker bailouts, or
what the Fed is up to -- because every "bad" economic development
actually helps some investment or another.Your investing life can
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Go here to learn about Amy's simple investing strategy.
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