Mattel is a damaged stock worth $22.25 @ close Friday. How far should I let it drop before investing in it?

Answer 1

From March to April of 2003 MAT fluttered around $19.98 - $20.75 but couldn't find support and quickly dropped to a comfort zone around $17.50. Again in Feb. of 2005 and again in March 2005, one day each MAT flirted with the $20.00 mark but couldn't even break through. It wasn't until Oct. 13, 2006 that MAT closed around $20.08 and then opened @ around $20.66 and found support above that. The last level of defined support in my humble opinion was at about $21.73 Overall despite the .18 move upward on Friday this stock has been in a down trend since May. If I were interested in MAT I would have been playing a SEP 7 30 PUT since May but that's just me. I think this stock is going to move sideways for a short time maybe a couple of weeks. If you have the ability to do options I would recommend that over owning the stock out right.

Answer 2

Always put in a "stop buy" order a few points above where it is. This way if it goes down... you can lower your price of entry and minimize your "loss" further.

Hopefully this investment fits with your current "asset allocation" model. If it doesn't.... you're making a big mistake.

BTW: It's great that you can trust strangers (whose qualifications and motives can never be known). To actually look to them to make a decision regarding your own money takes a certain type of individual.

Answer 3

You might want to consider what might happen to Mattel after a class action suit is filed against the company by 100,000 parents. I take it you do not recall the asbestos class action suits. I think maybe 100 companies might have gone under as a result.

Answer 4

i wouldnt even invest in it. go with a solid company like under armour

Answer 5

If you think it is going to recover, why wait. Invest now.

Answer 6

52 week low is 17.99 on no bad news. I'd be inclined to wait a bit.

http://finance.google.com/finance?client=ob&q=MAT