Mattel Product Recall: Gloomy Outlook or Buying Opportunity?
World Market Pulse submits:
Just over three months back, toy manufacturer Mattel Inc. (MAT) was receiving a lot of positive investor attention especially after the release of Toy Story and the company was having a positive outlook amid good sales figures but things have changed phenomenally in the recent past. First Mattel Inc. was accused by rival MGA Entertainment Inc of spying on rival toy companies for at least 15 years and if that was not bad enough Fisher-Price, a unit of Mattel, announced its intention to recall almost 10 million toys and other items in the United States and Canada due to the potential for serious injuries.The Consumer Product Safety Commission has expressed serious concerns over the company made tricycles and high chairs that are being directly blamed for children's injuries. According to Associated Press, the trikes, some of which feature popular characters like Dora the Explorer and Barbie have a protruding plastic ignition key near the seat that children can strike, sit on or fall on, leading to injuries that the commission said can include genital bleeding.The CPSC Chairman has criticized the toy maker by saying that it needs to do more to build safety into their products before they reach the stores but has praised Fisher-Price for agreeing to recall the products and offering consumers free repairs or replacement.Complete Story »
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