Category Archives: Stock Analysis

2 Value Stocks to Buy in November

Want powerful price appreciation within the next 12 months? Both stocks of Spin Master (TSX:TOY) and Trip.com Group (NASDAQ:TCOM), which just changed its name and ticker from Ctrip.Com International (NASDAQ:CTRP) this month to reflect that it’s an international business versus one that’s focused on China, have a probable chance of doing so.

Source: Spin Master website; Fuggler (thought they’re fun as Halloween is coming up x_o)

Spin Master toys win a special place in children’s hearts

If there were only one toy company that would succeed, it’d be Spin Master. It has had the highest return on equity and profit margin when compared to larger peers Mattel (NASDAQ:MAT) and Hasbro (NASDAQ:HAS). 

TOY Return on Equity (TTM) Chart

TOY Return on Equity (TTM) data by YCharts

Innovation

Spin Master is innovative. Across six research and development (R&D) centres, it has a deep internal talent pool that comes up with new ideas. It also has about 200-300 third-party inventors who complement its internal R&D. This results in thousands of ideas being filtered down to 30-50 that will be commercialized every year.

It’s no wonder that, since 2000, Spin Master has received 103 Toy of The Year (TOTY) nominations with 30 wins across a range of product categories, including 13 TOTY nominations for Innovative Toy of the Year.

Spin Master’s latest novelty, which was launched in early October, is Owleez™, the first ever interactive toy pet that kids can teach how to fly. This new toy, along with five others from Spin Master, are on Walmart’s (NYSE:WMT) Top Rated By Kids list.

Read More

Spin Master Corp: A Gem With Great Growth Potential

Spin Master Corp’s (TSX:TOY) 10% pullback in the last five days due to the bad press from Hatchimal complaints could be a long-term buying opportunity. After all, the children’s entertainment company is not a one-trick pony; it has a diverse portfolio of products. Further, it has passionate and capable management. It has won multiple awards across different product categories and has made successful acquisitions.

Spin Master PAW Patrol

Photo: Televisione Streaming. License: CC by 2.0. Source: flickr


Read More

Canadian Apartment Properties REIT: Should You Buy It?

If you want safe monthly income, add Canadian Apartment Properties REIT (TSX:CAR.UN) to your watch list. You can sleep well at night holding the quality units.

apartments

Why is it a high-quality REIT? What’s a good valuation (i.e. price range) to buy its units to prevent overpaying and to boost your starting yield? First, let’s see if it’s the kind of business you want to own.

Canadian Apartment Properties REIT Overview

  • Market cap: $4.1 billion
  • Price: $29.60 per unit
  • Yield: 4.2%
  • Payout ratio: 72%

Canadian Apartment Properties REIT started out with 2,900 residential suites in 1997 when it had its IPO. Since then, it has grown to a portfolio of about 48,514 suites.

CAPREIT growth 1997 to 2016

Source: CAPREIT Q2 2016 Presentation – Slide 7

Assets

Canadian Apartment Properties REIT is most notable for its assets from the stable Ontario province, which makes up half of its portfolio. Its assets in Ontario, Quebec and British Columbia all maintain high occupancies.

In total, the three provinces make up 83% of the REIT’s portfolio and adds stability to its financial performance. As a result, the REIT’s portfolio occupancy was 98.2% as of the end of June 2016.

CAPREIT portfolio diversification by geography Q2 2016

Source: CAPREIT Q2 2016 Presentation – Slide 23

The top three provinces from where the company earns the highest net operating income (NOI) margins are British Columbia (an NOI margin of 68.8%), Ontario (60.4%), and Alberta (60.4%).

Read More