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.
Leapfrog (LF) - buyout target
- Thread starter FCXoptions
- Start date
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.
Moving nicely! Up 7.5% so far. Looking for it to keep on moving up..hopefully.