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Mega Brands to be purchased by Mattel


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Guest 50centdollars

A FFH holding is being purchased by Mattel.




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.

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





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





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

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  • 3 years later...

Came across this.




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.

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