Hasbro stock falls almost 10%

Discussion in 'Transformers General Discussion' started by BraveMax, Oct 9, 2008.

  1. BraveMax

    BraveMax Used to speak Japanese

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    Hasbro's stock closed at $28.74, down 9.62% from it's opening price.

    While its shares had risen (up 3.4 percent, to $31.55) yesterday after it was upgraded to "Buy" status by Needham & Co on the projected lowering of commodity costs and strength of "Transformers 2" and the "GIJoe" movie.

    The early morning announcement of a recall for repair of one model of NERF guns, combined with the late market collapse may be responsible for the drop in price, though its stock price has been facing an overall slide since early September due to high commodity prices, falling disposable income in their home market, and pressure from the market.

    Despite a rise of almost $100K in revenue over the same quarter last year, it seems as though Hasbro may not be immune to the market pressures facing it. Now, it would seem, is a good time to buy Transformers indeed. A good sales figure on the next quarterly statement could have a significant impact on Hasbro's stock price, and on its future.

    Guess it's a good thing so many new toys are coming out now...
     
  2. Optimus Sledge

    Optimus Sledge Yar har fiddle di dee

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    That'll teach 'em not to start rumours about TFA being cancelled in the UK.
     
  3. BraveMax

    BraveMax Used to speak Japanese

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    Actually... Hasbro's stock traded up in Frankfurt, Berlin, and Munich. I think Germany is the only place it trades in Europe...

    *Shrug*
     
  4. Optimus Sledge

    Optimus Sledge Yar har fiddle di dee

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    I jest.

    Although it would be cool if a handful of Brits getting their knickers in a twist actually affected a US corporation.
     
  5. BraveMax

    BraveMax Used to speak Japanese

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    It would be, wouldn't it? I actually hadn't thought about that... Though I'm not sure that news has hit the markets yet, the delay in shipping and the poor sales for one of Hasbro's strongest lines in Europe could affect stock price as well.
     
  6. Tekkaman Blade

    Tekkaman Blade Professor of Animation

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    Everybody is going down, it'll eventually rebound.
     
  7. Johnator

    Johnator 'Til All Are Gone!

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    Eh just like everything else right now. It will bounce back. The economy just sucks right now.
     
  8. Gingerchris

    Gingerchris Telly-headed Tyrant

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    I'm sure all those returned TF figures because of poor QC don't help.
     
  9. Mechafire

    Mechafire Veteran TFW2005 Supporter

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    /Thread.
     
  10. BraveMax

    BraveMax Used to speak Japanese

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    That's a bit of an overly simplistic answer. The point is not that Hasbro's stock price is dropping - it's that it's dropped 10% in one day.

    Stock Scan: Growth Stocks - Markets Data Center - WSJ.com

    The stocks that did best today dropped ~2% on average. Even with all the bad news - and make no mistake, bad financial news CAN cause a drop in stock prices across the board - a 10% drop is pretty significant.

    To put it in perspective - the Dow dropped 7.33% today. The crash in 1929 was two single-day drops of 12.8% and 11.7% back-to-back.

    While Hasbro's drop was by no means the worst drop (NYSE Biggest Percentage Decliners - Markets Data Center - WSJ.com - please note that most of these are financials), it certainly wasn't the smallest drop either. It's also important to note that this drop came on the heels of some pretty good news for them.

    The point is not to be alarmist, or to suggest that they're on the verge of collapse. I only intend to highlight the fact that Hasbro is particularly vulnerable to the current economic situation, and that it really does desperately need strong sales over the remainder of the quarter.
     
  11. Dark Magnus

    Dark Magnus Your opinion is wrong!

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    Clearly 25th Anniversary Cyclonus is to blame for this...
     
  12. Feralstorm

    Feralstorm I ship Nick & Judy TFW2005 Supporter

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    I thought it was because the word got out there was a new Wheelie toy coming.

    Maybe people were selling off their Hasbro stock because the paint on it was sticky and rubbing off on their hands.

    Hey, these jokes are fun! :D 
     

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