Playing with JAKKS Pacific (JAKK)

John Reese offers a fascinating advisory service, Validea, which bases its stocks picks on the time-test methods used by variour "legendary".

Regarding JAKKS Pacific (NASDAQ: JAKK), he explains, "This Malibu, Calif.-based kid's products retailer gets approval from three of my guru-based models: Kenneth Fisher, Peter Lynch, and Benjamin Graham."

"JAKKS Pacific makes an assortment of children's toys and leisure products, such as Dora the Explorer and Pokeman playsets, Plug It In & Play video games, and World Wrestling Entertainment figurines, to name just a few.

"Several of its products are also of an educational nature, helping to teach children the basics about numbers, letters, and shapes. JAKKS, which has a market cap of $651 million.

"To identify stocks that are selling at a good price, Fisher created the price-to-sales ratio (PSR). For noncyclical companies like J