W/S rarely do I share your sentiment and your enthusiasm to this...

W/S rarely do I share your sentiment and your enthusiasm to this stock. There is always the first time…..! This time I am on your side.

There is however lack of clarity with the direction the firm has taken. They are no longer a pure toy distribution operation. They develop and manufacture their own products/IP for a number of years. Not 100% toy related goods.

Their product range is changing (refer to their annual report). It is targeted towards a wider consumer market (not just children) relying on marketing channels such as “As Seen on TV”. This is indeed a growing category in the USA retail environment.

The direction has potential, grow your audience base and the profit potential will follow. Yet it is a hit or miss game (like all business) and the model may be more relevant to larger population scales like the USA, not sure about Australia. The Oz consumer behavior, sentiment is vastly different.

Their aim is obvious, to reach out to foreign markets, a sensible and logical business decision. Then again, Chill Factor for instance did not take off in the USA. It was an expensive investment!

Establishing a product development conduit, sourcing concepts, ideas, constructing marketing campaigns takes time and money. Hence our assessment for a ‘turn around’ is approximately two to three years, at least. (Food related products are particularly complex, because of regulations)

Yes! There is the ASX share trading, aspect of the discussion, investors, graphs, tax time, annual cycles etc. This will be more relevant once the more basic aspects of the firm take shape.

FUN has been at the lower end of the scale for much of its listed life. I do hope they surprise everyone and turn it around. They may have the sharpest pencil for a CEO, he has a hard road ahead of him. The banks I believe are watching his steps very carefully.

This will be my last post on this stock. I will pop in to read your comments and follow up on the FUN.
I wish all the FUN community good luck and loads of true fun. (for a change)