Spin Master Corp (TOY.TO)

He likes this company quite a lot, in terms of its growth profile and management. The whole Hatchimal noise was a bit overblown. The company growth is very good. They know what they are doing. They can target demand and invent new products that are big winners.

This was in a super-duper nice up trend, and then started to break down. There was a low of around $32.50 in November, and it tested this in December, and then it broke down below. Because it is a relatively short-term chart and it is breaking down, he would be a little bit concerned about the stock. You don’t like to see a breakdown from a longish uptrend, so he would probably avoid this for now.

One of their problems was that the Hatchamils weren’t hatching, and also some of them had a pottee mouth. This is a very slow news time of the year, so a story like this got a lot of press. This was trading down about 13% as a result of the story. In the long run, it is probably a benefit to the company, because a lot of people who didn’t know these were produced by this company, now know that it is a Canadian company. Thinks there was an overreaction by consumers and the market. He was Buying shares today. Expects that one day this will get taken out, but in the meantime, there are a couple of good years ahead of you.

Chart shows the trend breaking down just below $40, to around $32.50, an area where you would want to find some support. A lot of this has to do with how the Hatchable toy story unfolds. He would be cautious and would wait for the dust to settle before jumping in.

Their toys are the hardest things to get. They are a success company, but no one really knows them. They had some huge successes. The multiple is not low but the growth is quite strong over the next couple of years. It is the blockbuster toy of this year.

(A Top Pick Sept 15/15. Up 60.09%.) A very, very good toy company, and there are just so many that can be dominant in the world. He was over impressed by management. Highly determined and sophisticated.

Their latest gadget, the Hatchimals has fired him up. A toy can fade, but this one sounds as though it is going to capture the kids for quite a long time. This is further proof of the company’s brilliance. He had heard that they were setting up local offices globally, to deal with local market situations. (Analysts’ price target is $38.14.)

(A Top Pick Sept 30/16. Up 22.77%.) This is a testament to the company’s and management’s ability to make hit toys. They have been doing it for years.

This seems to have all the hot toys for the Christmas season. The chart looks more like a parabolic run rather than a straight line higher. He is always concerned about parabolic runs, because you never know when it is going to revert back to its major moving averages. The fundamentals look great, but it has had a phenomenal run, making it very difficult to invest in. If you own, place a Stop at the 20-day moving average of $35, or perhaps the 50 day.

It has been a great growth story. It is hard to value a company when it is in this strong a growth trend. You have to expect more volatility if you want to stay with the trend. If it starts to trade below the 100 day average then it may not continue to go higher. (Analysts’ Target $38)

This company really has a good sense of the market. They have a three-year rolling plan, and basically are planning right now for 3 Christmases out. Growth rate is very high at 40%. He really likes what they are doing on the acquisition side. They are starting to take their leadership in toys and expand, and just bought a pool company that makes pool toys. A great, great company.

(Market Call Minute.) He likes this and thinks it continues to grow organically and by acquisition.

This is a founder led company which he likes. The founders started out selling Earth Buddies and Devil Sticks on the street and have built it into an international toy company. This is a fresher IPO, so they don’t have a lot of operating history, but if you can get past that, there is lots of life. They have a lot of growth levers to pull. Just getting started internationally and are not afraid to make acquisitions. Also they are starting to pair TV content with their product launches, which could be pretty powerful. If you have a hit TV show you will have a hit product, or vice versa.

He really likes the story. One of the world’s largest toy companies. It is tightly held with management having 70%. They are directly involved with the inventors of the toys.

Toy producer. It continues to be super innovative. Has huge brand power. Have a number of relationships with different companies such as Star Wars games, Barbie games, etc. This has been growing phenomenally, both organically and by acquisition. Not super cheap, but growing at a phenomenal rate. Insiders own so much of the stock, the float is not very big, so it does tend to be a little volatile. If you can pick a day or week when it is selling down, you get a chance to get into the premier toy company out of Canada. At some point, the stock is probably going to get taken out.