MATK’s growth estimates of 55% for this year and 18.5% for next year really make it appealing. MATK has also beaten earnings estimates for the past 4 quarters and is not only going to reap the benefits from the US baby mini boom but has recently entered other global markets such as Russia and also Eastern Europe. It is important for these population driven industries to diversify their consumer markets globally. Expanding their markets into emerging nations, if it makes sense, could drive future growth even if the US mini boom slows down. This would greatly enhance long term revenue growth but also provide more stable streams of revenue over time. MATK also has favorable stock characteristics such as a 32 million share float and a high short interest of 9.36 million shares comprising of almost 30% of the float. MATK fits the bill as a company to watch.

The Childrens Place Retail Stores, Inc. (PLCE)

This is one of my favorite baby boom plays. You just can’t get one shirt, you gotta get the whole outfit! Even during the recent economic downturn, PLCE has outperformed technically and fundamentally. I was going to write this article last week before PLCE had its earnings but unfortunately delayed it. PLCE handily beat their earnings estimate bringing in 66 cents per share last quarter compared to analyst estimates of 48 cents per share. “Our merchandise assortment for summer was very well-received by customers and our sharpened E-commerce marketing and merchandising efforts helped to drive web traffic and sales,” interim Chief Executive Chuck Crovitz, said in a statement. Cost cuts also helped boost the bottom line. When compared to GYMB, it seems PLCE is the better pick right now. Zack’s likes it.
I like PLCE’s stock float at 21 million shares with a 20% short ratio and 5.3 million shares short.

Leap Frog (LF)

Leap Frog makes educational toys for children and they do a get job of not only focusing on the fastest growing population segment with their Spanish speaking toys but they constantly develop new products to sell in order to boost revenue growth.