Mega Brands to be purchased by Mattel

[Packer16]

A FFH holding is being purchased by Mattel.

 

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[Guest 50centdollars]

A FFH holding is being purchased by Mattel.

 

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Nice present to wake up to this morning. I'm waiting for the Quebec government to come in and kill my morning lol. I hope not. Good acquisition by Mattel.

[ourkid8]

Francis Chou's RRSP fund also a large stake in Mega Brands through common / warrants...

 

Tks,

S

[Parsad]

Francis Chou's RRSP fund also a large stake in Mega Brands through common / warrants...

 

Tks,

S

 

I think Francis' cost was the equivalent of 25 cents a share or something.  Cheers!

[ourkid8]

What a home run... I only wish he bought some in Chou Associates as well!!! argh...

 

Tks,

S

 

Francis Chou's RRSP fund also a large stake in Mega Brands through common / warrants...

 

Tks,

S

 

I think Francis' cost was the equivalent of 25 cents a share or something.  Cheers!

[Cigarbutt]

Came across this.

 

http://www.cbc.ca/news/business/lego-job-cuts-1.4275744

 

Had done well with Mega Brands. At least to a moderate degree because shares and warrants had been bought with a margin of safety.

Sold concurrent to the cashless exercise of warrants.

Thought for a while that it was mistake to have sold when Mattel bought the company after.

 

The link above shows evidence of a weakening competitor and a potential opportunity for the Mega Brands sub of Mattel. I realize though that the likely sub-par performance of Lego is related to poorer industry dynamics in the building block segment which I had failed to appreciate fully even if the long term challenges were well described at the time. Bias because I enjoyed Legos when I was young?

 

Anyways, the toy business is and will continue to be challenging with the growing number of substitutes. I had looked at Mattel after the acquisition with interest. Notice now that they too seem to have a hard time.