During a week in which the Dow Jones industrial average dropped more than 400 points in one day, and the subprime mortgage slide continued to gouge lenders and builders alike, a toy company was one of the few bright spots in a week wrought with losses.
Bolstered by strong earnings, Jakks Pacific Inc., a toy maker in Malibu, rode a 158-percent jump in profits to be one of the few bright spots during a week in which the Los Angeles Business Journal’s index of the 200 largest public companies lost 4.7 percent, or 8.24 points, for the week. Jakks gained 10 percent to $23.67. Shares in the toy maker have gained 21 percent since mid-January.
There are bad weeks and then there are weeks like subprime lender Fremont General Corp. had. The Santa Monica lender started off the week mired in a slide due to Wall Street’s uneasiness about subprime defaults, but matters got much worse. On Tuesday, Fremont said it would delay its fourth quarter and annual earnings reports, giving no reason. Then the company on Friday said it was getting out of the subprime business all together, retaining Credit Suisse Securities LLC to shop around the damaged division. Shares in Fremont lost 30 percent for the week, closing at $8.71 Friday and losing another 18 percent after the market closed, to $7.10 a share. Shares in Fremont have fallen more than 63 percent over the last year.
Van Nuys-based Trio Technology Inc., which tests computer components for reliability, also lost big during the week, due to being oversold. Shares in Trio Tech dropped 20 percent to $13.15 for the week.