Is anybody looking at LF as a buyout target? Seems like there might be some potential there. It is trading around half the book value and has quite a bit of capital on hand with minimal to no debt if I'm not mistaken.
Decent article from Seeking Alpha discussing LF. http://seekingalpha.com/article/302...es-a-discussion-of-the-brands-potential-value Here are the bullets points,and keep in mind the author is long the common,and estimates have been lowered across the board.. LeapFrog is a powerful brand, well-recognized by families, parents and educators, and the company possesses strong commercial & sales distribution relationships. However, LeapFrog's cumulative profits since going public (in 2002) are less than zero. LeapFrog has spent over $1.3 billion on overhead costs, much of which would likely be unnecessary if LeapFrog were a subsidiary of a larger company. During the shareholder meeting this August, the Board should discuss the value of LeapFrog's brand to an acquirer compared to the value of its current strategic direction. LeapFrog's current value to an acquirer (including its balance sheet today) is likely higher than $6 per share, and possibly higher than $10 per share.
Yeah, I am thinking one of the bigger players in all of this, Hasbro, Mattel, etc could easily buy them out. I went long yesterday around when I posted @ 2.15/share. It is a small position that I will potentially add to as we move forward depending on how things are going.
nice alert..did some work last night NCAV is apx 3 net net working capital is 1.93 Unless it's a complete value trap,it should trade higher.. Jan 2.5 calls traded at .35