Today’s recommendation is a story stock with a seasonal component. Technically, now could be a good time to buy, as the stock has just begun rebounding from a month-long correction with help from a big insider buy.
LeapFrog Enterprises (LF)
from FXC Newsletter
Two words here: Kids and Santa. I am the father of four grade school children and I am the first to admit that they get whatever they want. LeapFrog Enterprises designs, develops, and markets technology-based learning products and related proprietary content for children worldwide. Leapfrog develops reading and writing applications for learning designed to be used with the iPad and iPhone. Their products are innovative and great fun for kids. They offer the LeapPad, the LeapPad2, the Leapster, LeapReader, and many other handheld devices.
The days of Barbie Dolls and Lego are behind us. Kids are using computers in classrooms at four years old and teachers are using virtual learning boards instead of blackboards. Leapfrog has surpassed Hasbro and Mattel in sales and their products are a top seller in Toys R Us and on Amazon. Do not laugh, but toddler-safe texting has arrived.
Spurred by burgeoning demand for kid-styled tablets, Leapfrog and VTech Holdings revamped their tyke-targeted devices to add features that let three-year-olds send short messages to grandma and even watch online videos without stumbling across websites kids shouldn’t see. Texting at three years old! When I was a kid my parents had to call me to come in the house at night. Now, I have to persuade my kids to get out of the house.
The future is technology. If you can’t beat it, join it, and we feel Leapfrog will reap the rewards this holiday season. Parents spend uncontrollably on their kids and they will be running full speed to buy these products. With the upcoming holidays, buy yourself this gift as we see this stock going as high as $20 next year. BUY.
Frank Curzio, FXC Newsletter, FXCnewsletter.com, September 2013