Jakks Pacific (Nasdaq:JAKK) issued updated guidance telling investors that they are having difficulty selling toys. About a week before Christmas Jakks figures out things are going bad so they finally fess up. Hard to believe they did not see the trend lines before. But then again maybe they do not use computers.
It gets worse.
They issue the update well after market close on friday. Hmm bad news issued on a Friday well after trading is over.
Another timing issue. On Nov 22 Jakks announced that its Board of Directors has declared a regular quarterly cash dividend of $0.10 per common share. The dividend will be payable on January 3, 2012 to shareholders of record at the close of business on December 15, 2011.
Of record Dec 15. So on Dec 16 they issue negative guidance. Hey lawyers and regulators lets take a look at trading patterns and the effect of being of record for dividend purposes.
Just doesn’t engender trust in management. By the way not one word on what they are doing to address the fundamental problem of terrible sales.
George Gutowski writes from a caveat emptor perspective.
- JAKK Makes Bearish Cross Below Critical Moving (forbes.com)
- JAKKS Pacific Shares Soared: What You Need to Know (fool.com)
- Jakks Pacific to Acquire Moose Mountain Toymakers (shoppingblog.com)
- Whoa! My Stock Just Took Off! (fool.com)
- 1 Reason JAKKS Pacific May Be Headed for a Slowdown (fool.com)