Value Investors: It’s Time to Consider Spin Master Corp. After Its Recent Dip

One of the most interesting companies on the TSX - not only because of its impressive growth streak of late, but also because of its product mix – is Spin Master Corp. (TSX:TOY).

The Canadian toy manufacturer has done incredibly well since its initial public offering (IPO), providing investors who got in early with a return of nearly 170% in a little over two years.

This company has grown its product mix, revenue and earnings numbers substantially over this time period, and has continued its upward streak following a recent dip associated with the impending bankruptcy of Toys “R” Us.

Spin Master is growing its sales and distribution channels to an increasingly online-focused and e-commerce based business model in which the toy supplier is becoming less and less reliant on Toys “R” Us for continued sales growth; as such, investor interest in Spin Master remains strong and expectations are that the company will continue to post strong results in the intermediate to long-term as Spin Master rolls out new product lines.

Its new line of best-selling Hatchimal toys has provided investors with yet another catalyst to look forward to for this upcoming Christmas season.

My expectation is that Spin Master will outperform yet again in Q4, and I will be following this company closely in the near-term to determine to what extent the market has correctly priced in the company’s growth prospects for the mid to long-term.

Invest wisely, my friends.