TTWO, THQI, NTDOY, MAT, LF, GLUU, Toys and Games Stocks 10.52% undervalued
January 26, 2011 / M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Toys and Games sector and these stocks are the most undervalued as of today. TAKE-TWO INTERACTIVE SOFTWRE (NASDAQ:TTWO), THQ INC (NASDAQ:THQI), NINTENDO CO LTD-UNSPONS ADR (OTC:NTDOY), MATTEL INC (NASDAQ:MAT), LEAPFROG ENTERPRISES INC (NYSE:LF), GLU MOBILE INC (NASDAQ:GLUU) are all expected to go Up as they are undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.
The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:
Symbol Company Name Last Close Fair Value Valuation Industry TTWO TAKE-TWO INTERACTIVE SOFTWRE 12.215 13.65 10.52% undervalued Toys and Games THQI THQ INC 5.715 10.48 45.46% undervalued Toys and Games NTDOY NINTENDO CO LTD-UNSPONS ADR 34.26 34.65 1.13% undervalued Toys and Games MAT MATTEL INC 23.74 24.62 3.56% undervalued Toys and Games LF LEAPFROG ENTERPRISES INC 4.09 7.09 42.30% undervalued Toys and Games GLUU GLU MOBILE INC 2.8 4.17 32.83% undervalued Toys and Games
Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.
Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.
TAKE-TWO INTERACTIVE SOFTWRE (NASDAQ:TTWO) - Take-Two Interactive Software, Inc. publishes, develops, and distributes interactive entertainment software, hardware, and accessories worldwide. The company develops and publishes software titles for various gaming and entertainment hardware platforms, including PlayStation3 and PlayStation2 computer entertainment systems, PlayStation Portable system, Xbox 360 video game and entertainment system, and Wii and DS systems, as well as for the personal computer and games for Windows. It offers products through its wholly owned labels Rockstar Games and 2K, which publishes titles under 2K Games, 2K Sports, and 2K Play. The company, through its subsidiary, Jack of All Games, also distributes software, hardware, and accessories in North America. Its proprietary brand franchises include Grand Theft Auto; Sid Meier's Civilization; Max Payne; Midnight Club; Manhunt; Red Dead Revolver; Bully; BioShock; Sid Meier's Railroads!; Sid Meier's Pirates!; Carnival Games; and Top Spin, as well as licensed brands comprise the sports games Major League Baseball 2K; NBA 2K; and NHL 2K. The company sells its software titles to retail outlets through direct relationships with large retail customers and third party distributors. Its customers include mass merchandisers, specialty retailers, video stores, electronics stores, toy stores, national and regional drug stores, and supermarket and discount store chains. The company was founded in 1993 and is headquartered in New York, New York.
THQ INC (NASDAQ:THQI) - THQ Inc. engages in developing, publishing, and distributing interactive entertainment software for various game systems. It offers its software for home video game consoles; handheld platforms; wireless devices, such as iPhone, iTouch and iPad; and personal computers (PC), including games played online. The company also develops and publishes titles for digital distribution, as well as offers PC titles through online download stores and services. In addition, it produces and markets action, fighting, racing, shooter, and strategy games primarily for avid or core gamers; games for the mass market and families; and online games. The company markets and distributes games directly to mass merchandisers, consumer electronic stores, discount warehouses, and other retail chain stores in the United States; and on a direct-to-retail basis, as well as through Internet and wireless devices internationally. THQ Inc. was founded in 1989 and is based in Agoura Hills, California.
NINTENDO CO LTD-UNSPONS ADR (OTC:NTDOY) - Nintendo Co., Ltd. and its subsidiaries develop interactive entertainment products worldwide. It manufactures and markets hardware and software for its home video game systems, including Nintendo GameCube and the Game Boy series. The company's entertainment products include 'Nintendo DS', a handheld gaming device with a touch screen and microphone port that enables intuitive game play; 'Nintendo Wi-Fi Connection', a wireless Internet service for the 'Nintendo DS'; 'Nintendo DS Lite'; 'Touch! Generations'; 'Nintendogs', which allows the player to interact with virtual puppies on the screen; 'Mario Kart DS'; 'Animal Crossing: Wild World'; and 'Nintendo GameCube', such as 'Mario Party 7' and 'Pokemon XD: Gale of Darkness'. Nintendo was founded in 1889. It was formerly known as Marufuku Co., Ltd. and changed its name to Nintendo Playing Card Co., Ltd. in 1951; and to Nintendo Co., Ltd. in 1963. The company is headquartered in Kyoto, Japan.
MATTEL INC (NASDAQ:MAT) - Mattel, Inc., together with its subsidiaries, engages in the design, manufacture, and marketing of various toy products worldwide. Its products include fashion dolls and accessories, vehicles and playsets, and games and puzzles. The company offers its products under various brands, including Barbie, Polly Pocket, Little Mommy, Disney Classics, Pixel Chix, High School Musical, Hot Wheels, Matchbox, Battle Force 5, Speed Racer, Tyco R/C, CARS, Radica, Toy Story, Max Steel, Batman, Kung Fu Panda, Fisher-Price, Little People, BabyGear, View-Master, Sesame Street, Dora the Explorer, Winnie the Pooh, Go-Diego-Go!, See N Say, Power Wheels, Just Like You, and Bitty Baby. Mattel, Inc. also publishes advice and activity books, as well as magazines, such as the American Girl. It sells its products to retailers, including discount and free-standing toy stores, chain stores, department stores, and other retail outlets; wholesalers; and distribution centers. The company also markets its products directly, as well as through its Web site, and agents and distributors. Mattel, Inc. was founded in 1945 and is headquartered in El Segundo, California.
LEAPFROG ENTERPRISES INC (NYSE:LF) - LeapFrog Enterprises, Inc. provides technology-based educational platforms worldwide. The company offers reading solutions, such as the LeapPad learning system that includes basic vocabulary and reading concepts to preschool and kindergarten children; and Tag learning system, a pen-based reading system that focuses on fundamental reading skills and offers a library of interactive books. It also provides educational gaming products primarily for children; The Leapster Educational Gaming system, Leapster or classic Leapster, a handheld device with a multi-directional control pad and a touch-screen enabled by a built-in stylus; Leapster2 platform, which connects to the LeapFrog Learning Path; Didj Custom Gaming System, a Web-connected handheld device that allows for customization of curriculum and game play; and Crammer Study and Sound System, a hybrid music player and study device. In addition, the company offers the Fridge Series, a line of magnetic toys designed for preschoolers and kindergarteners that teaches letter names, letter sounds, and learning songs: the Learn and Groove Series, which features bilingual musical learning toys: and Pre-school Games, a line of fast-paced handheld learning games; and Clickstart and My First Computer that introduces computer and preschool skills by turning any TV into a childs first computer. Further, LeapFrog Enterprises provides the LeapFrog Learning Path, an online tool that helps parents track what their children are learning with its Web-connected products, such as Tag, Leapster2, and Didj. It sells its products directly to national and regional mass-market and specialty retailers; and other retail stores and school-related distributors and resellers through a combination of sales representatives, as well as through online store and other Internet-based channels. The company was founded in 1995 and is headquartered in Emeryville, California.
GLU MOBILE INC (NASDAQ:GLUU) - Glu Mobile Inc. engages in the design, marketing, and sale of mobile games worldwide. The companys games based on licensed intellectual property include Call of Duty, Deer Hunter, Diner Dash, Guitar Hero 5, Family Feud, Family Guy, The Price Is Right, Transformers, Wedding Dash, Who Wants to Be a Millionaire?, World Series of Poker, and Zuma; and games based on its own intellectual property comprise Beat It!, Bonsai Blast, Brain Genius, Glyder, Stranded, and Super K.O. Boxing. It designs a portfolio of games for the wireless subscriber population, as well as for the users of smartphones. The company also develops games for social networking Websites. It markets and sells its games primarily through wireless carriers. The company was formerly known as Sorrent, Inc. and changed its name to Glu Mobile Inc. in May 2005. Glu Mobile Inc. was incorporated in 2001 and is headquartered in San Mateo, California.
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