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Should Mattel or Hasbro Buy LeapFrog?

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March 18, 2013 | Comments (2)

While LeapFrog (NYSE: LF  ) reported great earnings this quarter, shares have been somewhat stagnant, potentially due to one of the largest shareholders selling 3 million shares in December. In this video, Motley Fool consumer goods analyst Blake Bos takes a look at why shares didn't pop on the earnings report, and whether this company is potentially a buyout target for a larger toy company, like Hasbro (NASDAQ: HAS  ) or Mattel (NASDAQ: MAT  ) . 

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Blake Bos owns shares of LeapFrog Enterprises. The Motley Fool recommends Hasbro, LeapFrog Enterprises, and Mattel. The Motley Fool owns shares of Hasbro and LeapFrog Enterprises. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (2) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 18, 2013, at 3:12 PM, wolves2002 wrote:

    No. Let LeapFrog double then buy for 50% premium. It's probably Mattel or Hasbro shorting the stock.

  • Report this Comment On March 19, 2013, at 12:20 PM, tpozz wrote:

    I am long Leapfrog. Though I think like many, I am frustrated with the valuation. I have faith in the executive management, but I think they could do more for shareholders - i.e., stock buybacks to support the lethargic/falling stock price. Per the investor presentation, LF should have upwards of $200MM in cash by May or June 2013. Utilize $100MM for buybacks and the rest for CapX and working capital.

    Sooner or later, a PE firm is going to make a run at this company for the cash alone if the stock price does not improve - though a decision to sell really rests with Larry Ellison (and his investment vehicle) and the junk bond king himself (Milken) since they have some 49% of the voting rights.

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Related Tickers

5/22/2013 4:05 PM
LF $9.78 Down -0.29 -2.88%
LeapFrog Enterpris… CAPS Rating: *****
MAT $45.87 Down -0.78 -1.67%
Mattel CAPS Rating: ****
HAS $47.48 Down -0.98 -2.02%
Hasbro CAPS Rating: ****

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