As reported by Fool.com, 4Kids’ stock has been going nowhere but down. Now in their second declining quarter with sales 28% lower than usual ($12 million), things aren’t looking very good. In a business that is directly related to “fads” and “in’s”, 4Kids isn’t on the “in” side it would appear. Not only are they losing money, but it seems they’re spending a bundle too. In the past 6 months, 4Kids’ spending has gone up by 500%.
Perhaps new releases such as Sega’s cartoon series, Dinosaur King, will help, but it’s too soon to tell. If anything’s certain though, buying 4Kids stock shouldn’t be on your top priority list.
