Spin Master Corp

TOY-T

(A Top Pick Aug 08/18, Down 23%) They have almost no debt and have a lot of cash. They've made good acquisitions. They know their market and understand their customer. Great balance sheet. Investors like to beat this stock up, but he likes it alot. A misunderstood company.

It's a good entry point now. It's a great Canadian story. They continue to release innovative products and keep their balance sheet clean with no debt. Year-over-year comps will continue to improve. They are moving their supply chain chain to minimize the trade problem with China. Recent quarters show good execution.

They were impacted by the Toy R US shut down. They recently beat estimates, though. The comparables to previous years are not so favourable but they have gone out and obtained toys that are bought all year long. One toy they have could be a Christmas hit this year.

Buy on current weakness? Had lows in January and April. We want the current level to hold (also low around $36-37). Or else, it will fall back to $30 like it did in January 2017.

Consolidation story. New products, lots of acquisitions. One of their products is not doing well. Toys R Us closure has affected them. Online sales are not as profitable as bricks and mortar. The industry is in flux, so she's not jumping in.

On a risk profile, it's riskier because it's a small cap. Their franchise is Paw Patrol. Toys R Us issue has caused a decline in revenues. Stock will go sideways for a while. Don't allocate half a position just yet. If there's a selloff, its beta is 1.53. Overpowering headwinds right now.

He is now seeing a down trend forming. He expects further downside to come. If it breaks above $45 the trend is bullish again. But he is concerned of the recent heavy trading volume with the pullback. He would look elsewhere.

Went public 4-5 years ago. Strong grower. It stalled last year. The problem is to figure out whether this is a falling knife.

The chart shows a bottoming, reverse head-and-shoulders pattern. If we rise above $45, the chart will likely shoot up to $50. The chart looks positive. His indicators show a strong buy signal. The technicals look really good.

He followed it for a while here. It is a tightly held company. They have a good record of turning intellectual property into successful brands.

It is time to think about this one with the ToysRUS now behind us. The management team is excellent. He thinks they have recovered from the bankruptcy of ToysRUS now. (Analysts’ price target is $50.30)

He's been adding to his position. A leading Canadian company. Innovative that has established a global brand. The stock has come down a lot, but the whole toy industry has been hit by the Toys R Us bankruptcy. Be cautious buying ahead of the quarter. Now trading at 9x EBITDA, so now cheaper than before. Owners own a lot of shares, which is good. He is adding.

The shut down of Toys-R-Us created some disruption in this business. Paw Patrol still seems to be the big toy. This is a solid name and very well run. They have diversified their offering. Patience will be required in the short term.

Largest demographic group is the 29 years old. Ready at the point of household formation. No debt. They generate a lot of cash. (Analysts’ price target is $50.33)