Topic: How To Invest

Q: Pat: What is your take on Spin Master? Thank you.

Article Excerpt

A: Spin Master Corp., $51.43, symbol TOY on Toronto (Shares outstanding: 101.7 million; Market cap: $5.2 billion; www.spinmaster.com), designs and markets children’s toys, games and puzzles. It outsources the manufacturing to third parties. The company’s most popular toy brands include its Paw Patrol action figures and the animated TV series, Air Hogs remote control cars and planes, Meccano building kits, Spy Gear walkie-talkies, Hatchimals, and Bakugan Battle Brawlers. In addition, Spin Master sells toys and games featuring content that it licenses from major entertainment studios such as Disney, Warner Bros. and DreamWorks. These include toys based on Star Wars, Batman v Superman, Angry Birds and How to Train Your Dragon. The company sells its products through retailers in over 90 countries. However, sales outside of North America account for just 35% of its overall revenue. Spin Master originally began operating in 1994. It first sold subordinate voting shares (one vote per share) to the public and began trading on the Toronto exchange on…