It looks like the spandex-wearing goons at World Wrestling Entertainment
JAKKS has been involved in a long-term legal battle with the wrestling group, which could be why the WWE will be moving its ring to rival Mattel
In fact, as it seems to be playing out, Hasbro's
Couple that with retailers like Wal-Mart
The back half of the year should show better results for JAKKS and probably the other toy makers, too. JAKKS continues to enjoy phenomenal success with its Hannah Montana licenses and its WWE properties, despite the legal considerations. Some analysts think perhaps the loss of the license -- even though JAKKS picked up the smaller TNA wrestling acts to replace the WWE -- will serve as a drain in the future. The boys in spandex still draw a crowd.
While the first quarter's results didn't live up to my expectations, I actually appreciate the drop in price the market has given us. Management does, too. While there's a buyback program in place, it hasn't been utilized because the share price has been at higher levels. On the conference call, management indicated now might be a more opportune time for them to tap into that authorization.
With a host of properties from Hannah to Pokemon, WWE to its Eye-Clops night-vision goggles, there's every reason to believe that JAKKS' current valuation makes it an attractive target for investors who also want to be opportune in their timing.
Hasbro is a Motley Fool Stock Advisor recommendation. RC2 is a Motley Fool Hidden Gems pick. You can play with all the stock recommendations at any of the Fool's investment services with a 30-day free trial subscription. Wal-Mart is an Inside Value selection.
Fool contributor Rich Duprey owns shares of Wal-Mart, but does not have a financial position in any of the other stocks mentioned in this article. You can see his holdings here. The Motley Fool has a disclosure policy.