In a move to fortify its electronic games business, Mattel
Never messed with a 20Q? It's pretty darn impressive. Think of anything, and the handheld gizmo will figure it out in 20 questions or less. My son and his friends have rarely been able to stump 20Q; it's been able to nail even their more outlandish object and animal suggestions. I've had a soft spot for Radica since I made it one of my "10 Stocks Under $10" picks back in 2004.
Radica won't go down as one of Mattel's biggest acquisitions. The toy giant has taken heartier bites in the past, when it chowed down on Fisher-Price, Tyco Toys, and its disastrous acquisition of The Learning Company. However, Radica does give Mattel a bigger presence in the electronic gaming field, which provides fertile ground for smaller players such as JAKKS Pacific
Mattel and Hasbro
Earlier this month, both Mattel and Hasbro posted better-than-expected second-quarter results. It sets a welcome tone as the toymakers head into the important holiday shopping season. Radica should help Mattel, especially since Mattel's extensive distribution connections will broaden the reach of Radica's battery-operated games. So if you want to turn the tables on Radica's 20Q, go ahead and ask it "Who's your daddy?" In a few weeks, it had better know that "Mattel" is the only correct response.
Mattel is an Inside Value newsletter service selection, while Hasbro has been recommended by David Gardner for his Stock Advisor subscribers. Try any of our Foolish newsletter services free for 30 days.
Longtime Fool contributor Rick Munarriz is a kid at heart, but he does not own shares in any of the companies in this story. He has plenty of their playthings around his house, though. The Fool has a disclosure policy. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.