Post by
savinfamily on May 12, 2011 6:29pm
When the blood is leaking
Remember : you should always buy when the blood is leaking.
I assisted to the shareholders' meeting this morning and came to the conclusion that MegaBrands is more appealing than ever. Let us not forget the company is virtually debt-free. Take a look at the last quarter's results: MegaBrands is more solvable and sutainable than ever. You should also consider that some major exclusive licenses aren't active yet.
Q1 2011 is the 6th consecutive quarter with growing sales.
During this meeting, the only criticism came from Michel Nadeau who is a very competent financier and analyst. While the sensationalist media will put a negative spin on its comments (deeming MB as one of the worst examples of corporative attitude), a few facts deserve to be taken into account:
1 - Michel Nadeau agreed the results were good
2 - Michel Nadeau admitted he has continued buying shares even in 2010.
3 - He also admitted the bonuses granted to the Bernard brothers are in options and not in cash (the company didn't become poorer granting those bonuses, but enriched itself with more motivated managers. No money has been taken out of the company's cashflow)
4 - His exact words were : "The Bertrand brothers didn't have the right to grant themselves such an important future gain, after the shareholders lost half a billion dollars in '07-'08. Imagine how much they'll make with these options when the stock will be traded at $3-$4." I was at 2 meters from him when he said that.
In my opinion, it's this last sentence that we should retain.
I can't forget Michel Nadeau leaving the place, with 2 MegaBrands toy samples in his hands (a Hello Kitty and a Need for Speed), happy as a child seeing his dreams come true.
Comment by
jameslast on May 12, 2011 9:40pm
What's the strike price of the brothers' options? Thanks.
Comment by
savinfamily on May 13, 2011 7:16am
marc bertrand: 6.666.667 options vic bertrand : 4.444.444 optionsthe strike price is the price of 12 april 2010: 0.45 $
Comment by
Folken on May 13, 2011 6:34pm
My daughter LOVES Hello Kitty and the brand goes from toddlers to young adults.I'll hold my MD shares for now..............Folken
Comment by
jameslast on May 14, 2011 8:34am
Hello Kitty belongs to the company's Mega Bloks business, which is the company's major section and has always been running very well. The problem is the company's Stationary business, --- Rose Art and Board Dude, which were acquired by the company several years ago and have been sucking cash away ever since.