What was your favorite toy as a child?

Barbie (or other dolls)

Stuffed animals

Big Wheel


Easy-Bake Oven

G.I. Joe

Football, Basketball, other sporting equipment

I never had any toys, so I resorted to digging holes in the dirt with a stick.

In a day where toy makers seem to be busy at the earnings playground, Jakks Pacific showed up to report a 17% jump in net profit. On a per-share basis, the company earned $1.45 per share, up from $1.26 in the year-earlier period. Sales were 7.6% higher at $318.4 million.

Taking a view of the future, JAKK officials said the firm expects to meet its previously forecast 2007 guidance of $800 million in sales and net income of $75.8 million ($2.39 per share). The company also affirmed that it will continue to investigate opportunities for potential acquisitions.

After jumping higher out of the gate, JAKK has given back most of its gains and is sitting about 0.9% higher. The stock is currently perched between decent support (at its 20-week moving average) and very short-term resistance (at its 10-day trendline). From a long-term perspective, it looks as though JAKK may have resumed the uptrending pattern it enjoyed from August 2006 through this July. An August rebound back above the 20-month moving average likely contributed to this bounce higher.

A continued rally in the shares could be fueled by some short-covering attention. Presently, 17% of the equity's float has been sold short, amounting to a short-interest ratio of 13.6 days to cover. In other words, more than 2 weeks' worth of trading at the stock's average daily volume would be required to eradicate all shorted JAKK positions. With the stock on the verge of additional gains, it's possible that some of the bears could begin to look toward the exits.