LeapFrog (LF)

[rayank]

Yeah, I agree, and I am still in it.

[Money Train]

This things so undervalued its silly.

[rayank]

LF: upgrades and undervalued-gem-alpha article....

http://seekingalpha.com/article/1835222-leapfrog-an-undervalued-gem-that-can-leap-20?source=email_rt_article_readmore

http://finance.yahoo.com/news/tuesdays-top-upgrades-downgrades-195009151.html

[rayank]

LOL, yeah he is entertaining at least, if you can take all the SCREAMING?
But yeah EVERY stock he picks seem to be at or near it's 52 week high.
He is afraid to pick a turnaround story stock.
LOL
But I really can't watch him too much, so who knows what he does, but I did read what he said about our little frog.

[Money Train]

Missed that one... Poor fella, yellin all the time, funny how stocks typically go the opposite direction of what he screams.

He'd be a good weather man; just guess you have a 50/50 shot.. Haha

[rayank]

Yeah 5% is nice, especially after Cramer, the idiot says "LF is WAY TOO RISKY and SELL SELL SELL".
That's when I knew we would go up.
LOL

[Money Train]

Haha. Beginning to wonder.

Finally a jump in price. This thing deserves a few days just like today.

Still undervalued

[rayank]

Yes it does me too. Hope we are both not crazy? LOL

[Money Train]

Exactly... This baffles me. So cheap in relation to valuations.

[rayank]

"LeapFrog (NYSE: LF) (crazy cheap) hasn't got any of love from investors this year. It's trending scary close to 52-week lows after management lowered guidance for the holidays, noting the "tough retail climate." As usual though, Wall-Street's short-termism is our opportunity.
This company has constantly sandbagged earnings, beating the consensus for the last 11 quarters. Also, weak holiday guidance isn't exactly new news at this point. With some pointing to the weakest holiday season since 2009, many investors would think to steer clear, but that pessimism is already baked in and frankly misapplied here. LeapFrog is crazy cheap. The company trades at less than six times earnings with zero debt and about 30% of its market cap in cash. Its passionate CEO is just the cherry on top.
More importantly, though, retail is weak, tablets are still red hot. IDC believes this Christmas will mark a paradigm shift with worldwide tablet sales expected to outstrip PC sales for the first time. That's great news for the LeapPad Ultra, which can't stop winning educational awards and has landed a spot on Toys R Us' fabulous 15 list -- the de facto grouping for blockbuster toys each holiday season. While LeapFrog may seem like a lump of coal for investors, I expect Santa's sleigh to come stocked with Ultras this year and investors should prepare for a shiny gift-wrapped diamond instead."

http://www.fool.com/investing/general/2013/11/07/roundtable-1-stock-to-buy-in-november.aspx

[rayank]

LF: "Time to take a "Leap" of faith?

Of course, if it's growth you seek, you need look no further than one of the stocks Wall Street is down grading today to find it. Earlier this week, games maker LeapFrog enterprises beat earnings estimates soundly with a third-quarter report featuring $0.38 per share in profits -- $0.06 better than Wall Street had anticipated. Projections for the future likewise outpaced expectations, with LeapFrog predicting it will earn at least $0.36 per share this year, and perhaps as much as $0.46.

Regardless, analysts at Imperial Capital announced this morning that they are downgrading the stock to "in-line." Why?

According to Imperial, "an increasingly challenging consumer spending environment" and expected "highly promotional and competitive holiday season" all augur poorly for LeapFrog's profits in the current quarter. Although long-term, Imperial remains optimistic about the stock, the analyst is cutting $0.20 per share off its earnings estimates for both this year and next, reducing 2013 estimates to $0.44 per share, and 2014 estimates to $0.55.

If Imperial is right about that, then LeapFrog's current 5.6 "P/E ratio" may not be as big of a bargain as it looks. The $0.44 in earnings per share this year could soon have the stock valued at a P/E of 17.5 (if the stock price does not change), or a slightly less pricey 14 times forward earnings valuation.

And yet, even if Imperial is right about LeapFrog's earnings, I still think the stock's cheap enough to own. Moving from $0.44 to $0.55 in the space of a year implies 25% annualized earnings growth -- more than enough to justify a 17.5 P/E. Indeed, even the more conservative consensus projection for LeapFrog -- 17.5% long-term growth, according to Yahoo! Finance data -- should justify today's price.

Long story short, LeapFrog may not be as big of a bargain as it appears on the surface. But it's still a big enough bargain to buy."

http://finance.yahoo.com/news/wednesdays-top-upgrades-downgrades-172244884.html

[rayank]

Yes, I agree the selling seemed a bit overdone, and that we still have a good product that should do well at Christmas, and we still may be a takeover candidate.
IMO

[banker j]

Nice!

[rayank]

I added some also to what I had.

[banker j]

Couldn't resist grabbing some today. The market over reacted IMO

[rayank]

According to Yahoo, the next earnings announcement is this Monday, the 4th of Nov., so I doubt $12 by then, but maybe by the next one?
I have been in this for years and love the company, but it has lots of competition. It could also be a takeover candidate. (IMO)
Good luck.

[infamous]

I think within 1 or 2 weeks of the next earnings announcement this stock will go to 12

[rayank]

Nice buy. This is a solid company.

[infamous]

I'm in at 8.67. This is a 20 dollar stock all the way !

[Money Train]

I hold two degrees in finance, I'm a licensed CFP, a practitioner of investing. This stock has solid financials, great valuations, low debt, etc.

DD shows this stock undervalued.

I can not wrap my mind around its current pps.

Anyone have any insight? Curious.

[rayank]

http://finance.yahoo.com/news/teachers-recommend-award-winning-leapfrog-120000510.html

[rayank]

Nice entry point.

[mackwheaton]

Just opened a position here at $9.16. This is too good a company to be beaten down this much. Figure we could see a 25% pop by early December. And if they ever decide to aggressively pursue a school entrant format, that could be a game changer. But I won't believe it till I see it.

[rayank]

"LeapFrog(NYSE:LF)continues to collect accolades for its LeapPad Ultra learning tablet. The maker of educational playthings has seen its $149 tablet get added to Toys R Us' Fabulous 15 list and The Toy Insider's "Hot 20" 2013 list."

http://www.fool.com/investing/general/2013/09/28/a-fool-looks-back.aspx

[rayank]

LF is cheap article: http://seekingalpha.com/article/1714822-leapfrog-is-cheap?source=yahoo

[rayank]

LF - http://seekingalpha.com/article/1686522-low-priced-stocks-worth-buying-round-6?source=yahoo

Leapfrog Enterprises, Inc. (LF) designs, develops, and markets technology-based learning products and related proprietary content for children. Its products focus on phonics, reading, math, spelling, science, geography, history and music. LF was founded in 1995 and is headquartered in Emeryville, California.

Financial Performance
Profit Margin 14.10%
Return on Assets 25.37%
Return on Equity 33.17%
Revenue 603.72M
Revenue per share $1.22
Quarterly Revenue Growth 16.10%

LF has steadily increased its revenue and profit since the start of 2010.


The company is on pace to see increases in both profit and revenue this year as well as both Q1 and Q2 results were ahead of the same period last year.

Current Valuation and Recent Trading Activity

LF has a current price-to-earnings value of 7.09x and a price-to-book value of 2.04x with earnings per share of $1.38.

LF closed Tuesday at $9.78, $2.17 shy of its 52-week high and $2.78 higher than its 52-week low. It is trading below its 200-day moving average of $9.51 and right at its 50-day moving average of $10.53.

Earnings

For Q2, LF reported a net loss of $0.05 per share. This was a 58% improvement from the same period last year.

Just as with its revenue, LF's net income has been on the increase for the past several years.

Company Outlook

LF seems to be on the right path. Since struggling back in 08 and 09, the company has been able to continue its uphill climb of increased revenues and earnings. Through its recent new product offerings and partnerships, LF should be able to continue seeing increases on both fronts.

LF's stock price has decreased substantially over the past month, presenting IMO a perfect buying opportunity.


I believe that LF is currently undervalued and consider it a buy at its current price. With LF's recent string of new products and improvements to existing profits, I think it's only a matter of time before LF gets closer to $20.

Conclusion

In my opinion, the three companies reviewed above (ACCO, STB, and LF) are all solid buys at their current prices. I feel that the upside potential of each of these stocks far outweighs the downside risk associated with them. Each of these companies has made strategic decisions and actions to help achieve sustained growth and prosperity in the future.

I think ACCO and LF are priced at a nice buying opportunity right now. STB is priced higher (based on earnings) but I feel that its relatively safe and high yield dividend make the valuation understandable. I think that ACCO and LF will see substantial price appreciation in the next few years. I don't see the same for STB, so I recommend it as a buy only for income investors interested mainly in STB's dividend. As always, I recommend individual investors perform their own research before making any investment decisions.

[mackwheaton]

I took my profits today too. Heck I will take a 10% profit in two trading days anytime I can. Good luck all.

Still holding tight and even adding more to my BTH position, still feels like just the beginning of a long and merciless short squeeze that could give us a 40% pop by end of the month. Enjoy.

[rayank]

LF - 4% looking to fill gap at $9.59. It is at $9.33 now, up from $8.42 only days ago.

[rayank]

My thinking too.

[girlfriend]

I have no worries with LF....just need some patience. Holidays coming share price will move up in anticipation before. Maybe sell some before Christmas and hold rest for Q4.....play it by ear.

[rayank]

You did the right thing. I am hoping I did too? SOLID company though.

[girlfriend]

You'll do well with LF....I just wanted to take profits from yesterday's buys...

[rayank]

Ok nice move. I actually added again and now average at $9.14. I may have to go down with the ship or swim home.

[girlfriend]

Yup saw that! We already know they are undervalued but I did sell the shares I bought under 8.50 at 8.98 today. Still have my original long position. Hey.....had to! And will buy them back IF the shares dip again!

[rayank]

LF 4 Reasons Why Shares Are Highly Undervalued

http://seekingalpha.com/article/1676342-leapfrog-4-reasons-why-shares-are-highly-undervalued?source=email_rt_article_readmore

Conclusion
"I believe LF has three unique characteristics that makes it a compelling investment: 1) the company is in excellent financial health and has the resources to take it on the chin a few times before going down, 2) the company has hidden assets such as its strong brand name and a trove of top-tier educational content that are not being considered by the market, and 3) the company adopted and is successfully executing the right strategy.

In my opinion, LF is worth at least $1 billion, and its current market value is suggesting that the company is undervalued by at least 40% - this is a margin of safety hard to find these days."

[rayank]

Yeah, it seems maybe we bottomed out?

[girlfriend]

LF up in premarket....could be a rebound.

[rayank]

I added at $8.57, and I agree. Good luck.

[mackwheaton]

Jumped in at 8.55 today. My dirt bike TA says bike could not navigate that down slope so a correction upward is in order. $9.25 in a few days I believe. Stay strong longs, downdrafts started by questionable downgrades and smear tactics seldom end well for the perps.

[rayank]

(LF HUGE INSIDER BUYING yesterday) Leapfrog Enterprises Inc Rissman Owen Randall (Director) Buy 25,000 $9.10 $227,475 17:41:12 2013-09-03

http://www.insider-monitor.com/insider_stock_purchases-2.html

[rayank]

I added today. Average is $9.26, good or bad.

[johnsyn]

8:13 AM LeapFrog (LF) says its new LeapReader product sold out of pre-sale units in just under two weeks. Despite some Death-by-iPad chatter about the company's products, the strong response and positive reviews for the LeapReader indicates the company is still set up to dominate the category.

[rayank]

Yes it is solid.

[girlfriend]

LF at $10.10 on good volume. Chart looks great on this breakout.

[rayank]

LF: http://seekingalpha.com/article/1402971-leapfrog-has-international-expansion-and-new-products-to-excite-investors?source=yahoo

[johnsyn]

earnings call transcript http://seekingalpha.com/article/1397051-leapfrog-enterprises-management-discusses-q1-2013-results-earnings-call-transcript

While it's early in the year, we're tracking to have a successful 2013. And more importantly, we're investing in our future so we can extend our leadership in the children's education entertainment business and further strengthen our foundation for growth.

And just this week, we unveiled our LeapReader line of learn to read and write products at 2 major media events in New York City. Many influential consumer, business and tech media journalism bloggers attended these events. The LeapReader line received extremely positive feedback and some great early media coverage. In June, like the last couple of years, we will announce to consumers our new tablets, toys and content for the second half of 2013.

[johnsyn]

http://seekingalpha.com/news-article/6417671-leapfrog-reports-first-quarter-2013-net-sales-increased-15%

[rayank]

LF article: "So why am I holding on this stock? The reasons are simple:

1. The company has solid balance sheet and no debt - I can't argue with $120 million in cash (as of 12/31/2012... it probably has more now as it collects on its considerable receivables). I don't like debt for a cyclical stock, and LF is a cyclical stock with no debt (I say it is cyclical because it is highly dependent on key products and product cycles... oh boy, another can of worms).

2. I really do like LF products and truly believe it has tremendous value that is under-appreciated. When I have a baby, I will be a LeapFrog customer, because I believe it makes products that are actually educational and beneficial.

3. Given 2, if the company is able to rebrand itself as an educational solutions company (which is it trying to do now) instead of its current image as a manufacturer of toys with an educational twist, there can be tremendous upside potential and may even reduce the cyclical nature of the company's sales.

4. In response to the possible accusation that I am speculating with point 3, I don't believe I am paying for this built in option. The stock is cheap at ~9x adjusted earnings (after adjusting net income down for tax benefits).

If the company has survived all these terrible years, through all these terrible CEOs, and is still alive and kicking, there must be a secret sauce in there somewhere. I'm long LF."

http://seekingalpha.com/article/1258541-leapfrog-a-critical-view-from-a-long-investor?source=yahoo

[polkamatic]

.5 x .10 on those March 10.00 calls today...a long shot, no doubt, but...

Same ting on the April 10.00 calls!
@.20 x .25 !
http://finance.yahoo.com/q?s=LF130420C00010000


I'm banging my LeapPad on the table here..lol

[rayank]

LF: "buy a fast growing company at bargain prices"
http://beta.fool.com/jaf1975/2013/02/20/make-your-portfolio-leap-frog/24950/?ticker=LF&source=eogyholnk0000001