Are you aware of the Elsa and Anna phenomenon? The executives at Mattel, Inc. (Nasdaq: MAT) are. They’ve watched their once-popular Barbie doll lose appeal as young girls switch allegiances to the new dolls based on the popular children’s movie, “Frozen.” Barbie’s steady demise was one of the factors behind the January 2015 resignation of CEO Bryan Stockton. He took the reins of the company in November 2011, and though shares initially rose in the first few years of his tenure, they subsequently went into freefall. After such a sharp drop, shares of Mattel are inarguably cheap. They… Read More
Are you aware of the Elsa and Anna phenomenon? The executives at Mattel, Inc. (Nasdaq: MAT) are. They’ve watched their once-popular Barbie doll lose appeal as young girls switch allegiances to the new dolls based on the popular children’s movie, “Frozen.” Barbie’s steady demise was one of the factors behind the January 2015 resignation of CEO Bryan Stockton. He took the reins of the company in November 2011, and though shares initially rose in the first few years of his tenure, they subsequently went into freefall. After such a sharp drop, shares of Mattel are inarguably cheap. They sport a 7.6% dividend yield (more on that later), and trade for just 1.2 times trailing sales, compared to a 2.1 multiple for rival Hasbro (Nasdaq: HAS). Hasbro now has a greater market value than Mattel for the first time in more than 20 years. Low valuations don’t make a stock inherently appealing, unless they are accompanied by a good turnaround plan. And that is just what new CEO Chris Sinclair has offered up to investors. Since becoming CEO of the company earlier this year (losing the “interim” tag in April), Sinclair has taken a close look at every aspect… Read More