WHEN a company admits mistakes have been made in investor relations, it is worthwhile giving the management the benefit of any doubt left following the disclosure. In the case of Playmates International, which is saying it wants to improve soured relations with investors, the jury is set to stay out for a long time, however. It is very easy for a company to state publicly that its investor relations now take pride of place. This kind of sentiment is commendable but it needs backing up with tangible actions. After Playmates came in well below market expectations for the 1992 financial year, many analysts put the company on hold. Financially the company is secure with $770 million in the bank and a vibrant range of toy products intended to catch the eye of young buyers. It is all very well for the company to suggest that Playmates has tremendous upside - many analysts prefer to see the bottom first before they look up again. What the company needs to do is to start talking the securities industry's language, with figures and percentage change measures so that investors have a real picture based on numbers and not on bland statements or a copy of the most recent brochure. Playmates has to be commended for stating it wants to improve relations with investors. But the company needs to increase the frequency of its corporate up-dates and provide more financial data on these occasions to help analysts determine for themselveswhere the company is going. An informed point of contact which is readily available is needed at the company - as many of the executives are often too busy to take frequent inquiries in person. _ GARETH HEWETT
