And Again

Yesterday Mattel announced that it was recalling another 800,000 toys due to lead paint issues. 

A couple of additional observations:

• According to the article, China makes about 80% of toys sold globally.
• The toy business is highly seasonal - the September and December quarters accounted for 69% of Mattel's 2006 sales - so we won't have a strong sense of how much fundamental impact this is having until the current quarter is reported.
• Despite this latest announcement, MAT stock has performed about in-line with the market over the past five trading days.