Stockchase Opinions

Greg Newman Spin Master Corp TOY-T DON'T BUY Apr 12, 2023

Depends on growth rate. One thing they've struggled with is future growth. He needs to see serious levers for growth that make sense from a risk/reward perspective.

$36.250

Stock price when the opinion was issued

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BUY

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DON'T BUY
It is a really well run company. It is a dominant player in the toy industry. The business is very lumpy month to month, year to year. Kids are sending more time on-line and not playing with toys.
DON'T BUY
They carrry little debt and are still run by the founder which is good. It trades around 14x earnings while returns remain above 20%. Well-run. Has relied a lot on acquisitions and integrating them well. They relied on the Paw Patrol franchise a lot, but that is relying too much on a single franchise. This is a hit-or-miss situation which he doesn't like. TOY doesn't have the track record of Disney to withstand that risk.
BUY ON WEAKNESS

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. 2022 Guidance maintained. Strong pull-forward in demand. Supply chain issues curbed. Initiated first ever dividend. Unlock Premium - Try 5i Free

BUY ON WEAKNESS
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Reported a better than expected quarter. Online migration accelerated. Strong balance sheet. Global exposure.
HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Reported a better than expected quarter. Online migration accelerated. Strong balance sheet. Global exposure.
BUY

Currently a good looking chart.
Good time to buy.
Base breakouts a good time to buy.
Breakout suggesting profits are available. 

BUY ON WEAKNESS

Big pullback, then a double bottom, sideways trading, then stock broke out. Negative news today, but it's still holding in sideways trading channel. As long as we don't break below recent lows in the range, chart shows higher highs and higher lows, an uptrend. Now in sideways consolidation, a "pennant" in technical terms, which typically results in a continuation of the move. Add on weakness, limit exposure near the recent lows.

DON'T BUY

A definite series of lower highs and lower lows. Continues to languish, downtrend remains in place. Value trap. Unless something changes, just avoid. So many other good places to put your $$ to work.