Topic: How To Invest

Dear Pat: Please give me your thoughts on Spin Master Corp. Thank you.

Article Excerpt

A: Spin Master Corp., $31.74, symbol TOY on Toronto (Shares outstanding: 101.7 million; Market cap: $3.2 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 products include: toys based on its Paw Patrol animated TV series; Air Hogs remote control cars and planes, Meccano building kits and Spy Gear walkie-talkies. In addition, the company sells toys and games featuring content 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 60 countries. However, sales outside of North America account for just 30% 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…