Mattel (MAT)

Add a New Bears Reason Company: Mattel (MAT) Current price: Headline: (100 character max) Analysis: Cancel 50% agree 4 votes   High oil prices negatively impacting margins Top Contributor: Michael Mitchell | Created when NYSE:MAT was $25.33 | Edit | History High petroleum prices are likely to hurt Mattel's margins in the near future. The company depends on petroleum based plastic resin as well as transportation. Because of rising costs of commodities like resin, Mattel's manufacturing costs increased drastically in 2007 and 2008. As a result of these higher costs, Mattel's Q3 2008 net profit increased only 1% on the tails of a 6% increase in sales. (100 character max) Cancel 0% agree 0 votes   Facing hot competition with Wal-Mart Target Created when NYSE:MAT was $25.33 | Edit | History The change in retail landscape means that Mattel will have to deal with powerful discount retailers such as Wal-Mart (WMT) and Target (TGT). This, combined with strict inventory control enforced by these retailers are eating away Mattel's margins. (100 character max) Cancel 0% agree 0 votes   Products in the toy industry have much shorter life-cycle than before Created when NYSE:MAT was $25.33 | Edit | History Products in the toy industry have much shorter life-cycle than before. The industry, as a whole, faces threats from growth in video games. (100 character max) Cancel 33% agree 3 votes   Recalled Toys and Chinese Manufacturing Top Contributor: Michael Mitchell | Created when NYSE:MAT was $21.30 | Edit | History Recalled toys jeopardize Mattel's sales. In 2007, Mattel recalled over 18.6 million toys after they were discovered to contain small amounts of led based paints. Manufactured in China, Mattel now must take more precautions to make sure that this PR debacle and loss of sales does not occur again. (100 character max) Cancel

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