TRANSFORMERS MOVIE HAS JIM CRAMER AND FINANCIAL BLOGS BULLISH ON HASBRO STOCK

by Inveslogic | June 27, 2007 at 01:03 pm
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The excitement surrounding the impending release of the Transformers film isn't just limited to over-caffeinated boys in grade five. A group of expert financial blogs have been discussing a recent surge in Hasbro shares based on the July 4th release of the film. Wall-Street is going crazy for Transformers and the blogs seem to think that investors firmly belive that the film will not only be a smash success at the box office, but spark a world-wide revival of the once-popular toy series.

On his syndicated Mad Money show, Jim Cramer gave the thumbs up to Hasbro. Financial Post Tradingdesk linked to top financial blog Seekingalpha: Stock Market Opinion & Analysis quoting Cramer as saying “You've got to pull the trigger at Hasbro!” Seemingly, Cramer was bullish on the entire sector lumping Hasbro in with its rival Mattel and declaring, “Hasbro and Mattel are cash machines. They make a ton of money. They are consistent growers.”

Respected financial blog 24/7 Wall-Street reported some specific numbers reflecting the recent run on Hasbro shares. “Investors have run the stock up roughly 10% off of the lows over the last 6-months. This may not seem like much of a run, but shares are up close to 90% in the last year.” The post also lays out some very specific forecasts for the future of Hasbro stock, seemingly based around the fact that this quarter is traditionally the worst one for toy companies. 24/7 Wall-Street is convinced that investors think Hasbro has nowheres to go but up.

The blog also mentions that Hasbro stands out amongst its competitors in the toy manufacturing industry and that fact is seemingly reflected in its price-to-earnings ratio, “its current P/E ratio is above 20 and based on consensus estimates of $1.85 EPS for fiscal 2007, it trades at roughly a 17.4 forward P/E. This is a premium to the largest competitor Mattel Inc. (MAT-NYSE): $10 Billion market cap; 17.5 trailing P/E ratio, and 15.9 forward P/E ratio. Hasbro's stock has had a 52-week trading range of $17.00 to $33.43.”

All of this attention must come as good news to Hasbro shareholders and executives. The stock had taken a slight hit earlier this year when they announced a voluntary recall of the venerable Easy-Bake-Oven. Expert financial blog SchaeffersResearch had a post from February announcing that Hasbro was “recalling 985,000 Easy-Bake ovens after receiving 29 reports of children getting their fingers or hands caught in the electric toys.”

Hasbro has seemingly shaken off any investor apprehension and expert financial bloggers concur that there the sky's the limit for Hasbro thanks to their robots in disguise.

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