• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Consumer Discretionary

Cramer: Hasbro Had It Right All Along; The Payback Was Swift

This company found the story to be told and went with it.
By JIM CRAMER
Feb 07, 2017 | 06:33 AM EST
Stocks quotes in this article: HAS, NWL, HBI, UA, TGT, WMT, M, KSS, MAT

You can see how the hedge funds got Hasbro (HAS) wrong. You can see that they didn't believe in the transformation. They figured that, in the end, Hasbro was just another company that sold into the mall, another Newell Brands (NWL) , another Hanesbrands (HBI) , another Under Armour (UA) , another whatever.

They didn't get that Hasbro saw that you had to be an entertainment company that sold toys and games. You had to make your own content, as they are doing right now with My Little Pony, which Lionsgate will be debuting in November. You had to create studios and create games.

You had to do anything but sit there and get beaten like everyone else who sells into Target (TGT) or Walmart (WMT) or Macy's (M) or Kohl's (KSS) .

Things happened so fast it was hard to see coming. The money that Hasbro spent on creating an entertainment company that tells stories that have merchandise attached to them got lost on people, hence why the stock got hammered the previous quarter.

But the payback was swift. And it might be lasting.

When we think about companies that supply into mass merchants and discounters and department stores going forward, we are going to have to think about those that took it, like Mattel (MAT) , and those that said we have to reinvent, like Hasbro, and we have to get long the latter and say goodbye to the former.

You simply can't be a company that makes merchandise that can be sold in a traditional way, just like you can't be a seller of traditional merchandise any more. There has to be, to use Hasbro's term, a story to be told.

Without it? You have a stock that would have gone down 10 points instead of up 11.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long NWL.

TAGS: Investing | U.S. Equity | Consumer Discretionary | Earnings | Gaming | How-to | Jim Cramer | Markets | Stocks

More from Consumer Discretionary

Boot Barn Gets a Quant Upgrade: Do the Charts Fit?

Bruce Kamich
Jan 19, 2021 1:53 PM EST

Here's our latest analysis and trading strategy for the shares.

Signet Jewelers May Retest the Breakout From Its Base Pattern

Bruce Kamich
Jan 15, 2021 8:09 AM EST

There is a risk of a pullback to the top of the base pattern or down to the $30 area.

Norwegian Cruise Lines Fights to Survive

Jonathan Heller
Jan 13, 2021 11:00 AM EST

The markets appear to be looking forward for the cruise industry.

Coca-Cola Could Turn Lower as the Bullish Fizz Is Escaping

Bruce Kamich
Jan 6, 2021 9:15 AM EST

Price momentum often weakens before a turn lower.

Planet Fitness Charts Suggest Its Shares Could Use Some Firming Up

Bruce Kamich
Jan 6, 2021 8:11 AM EST

The technical signals indicate that the stock of the fitness chain could head lower in the weeks ahead.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 11:09 AM EST GARY BERMAN

    Is Copper About to Turn to Rust?

    Below is a very long-term copper chart.  As you...
  • 08:02 AM EST GARY BERMAN

    Tuesday Morning Fibocall for for 1/19/2021

    SPX (Long-Term View) The 1/8/21 high @ 3826.69 i...
  • 09:01 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    When it's time to sell, will you act or freeze?
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login