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Should Mattel or Hasbro Buy LeapFrog?

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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  • 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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Blake Bos
TMFBos

The Motley Fool's industrials analyst, I specialize in 3-D printing and also do my best to stay up-to-date in the fields of robotics and oceanic transportation. Follow me on Twitter, Google+, and/or Facebook below for the most important 3-D printing industry developments and other great stories.

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Related Tickers

6/30/2015 4:05 PM
LF $1.40 Down -0.05 -3.45%
LeapFrog Enterpris… CAPS Rating: ***
HAS $74.79 Down -0.81 -1.07%
Hasbro CAPS Rating: ****
MAT $25.69 Down -0.21 -0.81%
Mattel CAPS Rating: ****

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