What happened Monday?
“It’s not what I would have forecast,” says Verrecchia. “We had a great quarter… and as long as we keep doing that the stock will take care of itself.”
What’s your association with deals such as Spider-Man?
“In the case of Spider-Man we’re licensing that property from Marvel (MVL),” explains Verrecchia. “We pay them a royalty and we make our normal margin on the sale of toys and games.
He adds “In terms of Transformers, that’s our intellectual property so in addition to selling the toys and games, we also retain the lifestyle merchandising rights as well."
So Transformers has more financial potential for you?
“Absolutely,” answer Verrecchia.
Then, what doesn’t The Street understand?
“I think the stock will be up by the end of the week,” says Verrecchia. “Long-term investors will see the strength in Hasbro’s earnings and the strength the company has going forward in the second half of the year and into ’08.”
Do you feel expectations were too high for Spider-Man?
“They certainly could have been,” says Verrecchia. “There are some analysts who say Spider-Man is doing fine and other who say Spider-Man is underperforming… It depends on expectations, but we’re very pleased.”
Dylan asks the guys what they think of this stock.
Jeff Macke, Pete Najarian and Guy Adami all say the stock is a buy on the dip.