If you've ever had the entrepreneurial bug dig its teeth into you, odds are that you might take heart anytime a company's founder steps down and moves on. Granted, sometimes you have instances such as Gateway's
Last night, LeapFrog's
I guess I'm biased because when my six-year-old dazzles guests by nailing just about every state capital, I know that I have LeapFrog to thank for that. Then again, like too many LeapFrog customers, he has moved on to other toys these days.
But, yes, there was a time when LeapFrog's revolutionary LeapPad learning toy had both Mattel
Perhaps that's where it erred. The stock has surrendered more than half of its gains since peaking last year, and it's easy to look back now and wonder why the company didn't cash out and let one of the larger playthings giants buy it out at a premium.
Things only got worse from there as the company's slumping financials saw sales dip. Over the past year, gross margins slid from 53% to 45%. Yet that is not as grim as it may seem because it is the result of the company branching out with a wider product line while making the grade in the school market.
Unlike my son, I haven't given up on LeapFrog. Unlike the popular adage, I won't be knocking on Wood.What do you think of LeapFrog toys? Are they the ideal learning toys, or are they just battery eaters? All this and more in the Parents and Expecting Parents discussion board. Only on Fool.com.
Longtime Fool contributor Rick Munarriz still acts like a kid in a toy store. However, he does not own shares in any of the companies mentioned in this story.