Thursday, 25 October 2007

4Kids Entertainment Finally Rolls Out Chaotic (KDE)

After several delays over the past several months, 4Kids Entertainment unveiled its Chaotic trading card game and website on 10/24.

We were drawn to KDE initially because of its solid balance sheet ($106 million in cash, no debt) and fact that it traded (and still trades) at less than twice net current asset value. We viewed the Chaotic rollout as a major "potential" catalyst; "potential" because of the frequent release delays prior to our initial position. The hope is that Chaotic lives up to its potential as a Webkinz-like phenomemon. Of course, its way to early to tell whether that will be the case.

For more, see our initial 7/4 KDE post.

4Kids Entertainment
Ticker: KDE
Price: $15.94
Cash & S/T Invest: $106 million
Market Cap: $211 million
NCAV: $117 million

*The author has a position in 4Kids Entertainment (KDE). This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only. The author will not trade any of the securities mentioned (buy, sell, short) for at least two weeks following the date of this post.

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