Spin Master Corp (TOY.TO)

The continued luck with the Paw Patrol line up and the Hatchimal’s is still doing very well. This is not widely followed on Bay Street.

Has been performing very well this year, did a small correction, chart looks perfectly fine. He would expect a small pull back so long it doesn’t break the high-40s trend line. Looks like a perfectly good stock from a technical analysis perspective.

(A Top Pick Dec 14/16. Up 46%.) They have liaisons with the Disney’s of the world and others. Very, very talented Canadian group. It should continue to grow.

(A Top Pick Sept 30/16. Up 56%.) A great Canadian story. He still likes this. They are very innovative. Last year they had Hatchimals, which was a blockbuster product, but doesn’t expect them to have the same sales this year. There is also the Toys “R” Us bankruptcy issues which might create some disruption in the short-term. Wait for 3 months until their holiday results come through.

Just reported, and numbers were a little softer than what the street expected. Their numbers can be a little lumpy from quarter to quarter, and they trade at a fairly high multiple. When that happens, it is not surprising to see the stock fall off. Longer-term, this is a fantastic business. They are real innovators. A difficult business, because they have to be constantly innovating. They’ve done a really good job in making acquisitions.

Toys R US went bust. But he likes Spin Master Corp. (TOY-T). This is a great company with great growth. They have the media which is how they market. They are in a very positive growth market. (Analysts’ target: $51.00).

It has done quite well and is now one of the larger toy companies in the world. They strike licensing deals with investors of toys. There will be hits and misses each season. It is an expensive stock. Hold it but consider taking profits to avoid portfolio concentration.

(A Top Pick Dec 14/16. Up 47%.) Thinks this will go on. It’s the foremost of the toy companies below the level of Disney etc. They are very creative and have developers all over the world. Continue to hold.

Christmas is coming, and this is a season where you want to own toy companies.

Sell after they announce quarterly results, and Buy back on dips?There is no seasonal chart for this as it is too new. This is a stock he has been looking at, but it just keeps on going higher, and he can never get in at a good price. They are firing on all cylinders, and the stock price is reflecting that. However, gambling on one data point based on earnings is just a gamble. He would not encourage that. If you can get in on its 50-day moving average, do it.

One of Canada’s great success stories. Management owns a huge chunk of it. They recently came out with a high quarter. They were up 42% in Q1. The next 6 months or so will have them beating expectations. (Analysts’ target: $52.00).

This just got added to the TSX. When that happens, people and companies have to buy it, so there was a lot of trading. The Toys “R” Us problems won’t necessarily impact this company. Has a great, long term trend. A little volatility at different times.

(A Top Pick Sept 21/16. Up 31%.) In the long-term, they have done a great job of coming out with innovative toys that the market likes. They’ve also made some interesting acquisitions and continue to diversify their product line.

(A Top Pick Aug 19/16. Up 53.57%.) The greatest, pure toy company in the world now. An extraordinary creative team. They have set up offices around the world, which gets them to their creative people and the markets.

Growth is good as is price momentum. They have done extremely well. He wants to see more quarterly results before buying it.