Savvy Trades and Investments

[gilead23]

Been buying some JAKK between 21 and 22.

They did a rather shocking 2.10 in normalized eps (2.60 as reported) in a seasonally weak quarter where they usually lose money.

Their seasonally strongest quarter is coming up. They did almost 4 dollars a share in q3 last year.

It’s pretty clear there was some level of revenue pull forward into q2, but q3 revenue is normally 2-3 times q2. You could have meaningful pull forward and still see revenues in q3 up well over 50% sequentially.

Benefit street partners is currently liquidating with about 600k shares to go and they were selling aggressively. I think that is putting a lid on the price, and when they are done it should re-rate up to some extent. I can’t blame them. They are up 100% and hold a huge chunk of company debt to boot.

The float is also pretty small so a low float run isn’t out of the question.

The risk/reward just looks good to me here. I originally bought and flipped on earnings given cagey answers on the CC, but going back in history this seems to be their norm.