This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

'Monster High': Mattel's Big, Bold Move

NEW YORK ( TheStreet) -- Mattel (MAT - Get Report) has officially unveiled its new Monster High franchise, reported to be one the largest the company has ever undertaken.

While the risks of creating the Monster High franchise has been significant, the rewards -- both financially and in a broader cultural context -- could be broad.

"What is important to keep in mind is that many of the larger toy manufacturers often define $100 million in sales as a 'successful' brand or product, so if it does reach those sales levels over the next year or two, the Monster High franchise could be meaningful to Mattel's top line," UBS analyst Robert Carroll said.

According to Carroll the, development costs for the franchise are expected to be in the tens of millions. He also noted that while this launch isn't without risks, the timing of it has been fortunate for the Mattel; it will be occurring at a time when the company's sales will be benefiting from new entertainment licenses such as Thomas and WWE, and greater growth from the upcoming Toy Story 3 movie release and the 2011 release of Cars 2, which the company also has toy rights to.

>>Search for Highest Dividends by Rate or Yield

"So even if the Monster High launch does not gain traction at retail, it will be at a time that Mattel will have other growth drivers supporting the company's top line, helping to balance the risk and reward."

Sterne Agee analyst Margaret Whitfield has noted that Mattel's lineup is the strongest she has seen in a decade.

The momentum will likely "build in 2011 with added toy lines and a full year of marketing the new Monster High franchise," she noted.

Mattel's Monster High franchise targets tween and teenage girls, and is designed to bring the "hip" teenage descendants of the world's most famous monsters, like Dracula and Frankenstein, to the trials and tribulations of high school.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
MAT $22.61 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs