Spin Master Corp

TOY-T

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)

Shares are off 20% from its highs. Its grown to be one of the biggest toymakers in the world. TOY will come out of Toys R Us' disrtuptive closing stronger. No debt. Very entreprenreurial management. A long-term hold. (Analysts’ price target is $53.44)

(A Top Pick Oct 23/17, Down 11%) When ToysRus went bankrupt last year it threw something into the equation all last year. He still likes it and thinks management is doing a good job.

His kids enjoy their toys, TOY's brands have fallen off quite a bit in the market and the new ones likely won't excite.

Has a small short, because its price momentum has rolled over. It's a growth stock. Valuation with high 29% ROE. Fine balance sheet. Made their last quarter. To get more interested in this, he wants to see better price momentum.

You are betting on content to drive sales. You are betting on management's innovation to create the next big toy or two. They don't have a debt problem. They aren't that stable on the earnings front.

Buying opportunity? It has some fantastic brands, but subject to fads, which could have a material effect. But he has some concerns such as high valuation for consumer products company, management structure, and Toys R Us issue in the States. Be cautious on this name. You could be seeing some profit taking right now.

Well-run and he will buy more. It's been pulled back so now is a buying opportunity. An integrated company that does entertainment and delivers toys as a package.