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This Incredible Canadian Company Has Innovation in its Veins

Innovation is an important attribute that many investors correlate with high-flying tech stocks. Tech companies that have shown they can innovate have delivered astronomical returns to investors who were early enough to the party.

As we move into the future, technology and innovation are becoming must-haves regardless of the industry the company operates in. Think about it. It’s not just the tech industry that needs to innovate these days. Financial companies, retailers, and even railroads need to be innovative to drive sustainable long-term growth. Some management teams shy away from new tech, while others embrace the idea of new tech over time. And for a select few, innovation comes naturally.

Spin Master Corp. (TSX:TOY) is a company with a management team that I believe has innovation in its DNA. The company has a strong R&D team which has developed some of the hottest toys on the planet. Think Hatchimals and PAW Patrol, which are more than just hot toys; they’re incredible brands with staying power!

You’re probably aware of the huge success that Hatchimals experienced last year, and you’re probably wondering if the demand this holiday season will be of a similar magnitude of last year’s holidays. Some investors may believe Hatchimals is a one-hit wonder, but I strongly disagree. Hatchimals is an innovative product that is a must-have to kids. Spin Master has the incredible ability to create phenomenal IPs that wow kids and parents alike.

What’s in store for the 2017 holiday season?

Hatchimals is likely to be a strong seller for the holidays again, and, fortunately, it appears that supply will likely meet demand this time around. In addition to Hatchimals, Spin Master has a solid lineup of new products, including Luvabella, which some believe may be this year’s Hatchimal.

What is Luvabella?

Luvabella is an incredibly life-like baby doll that can be tickled, fed, or even play peek-a-boo. It’s so life-like, that it’s more of a robot baby than a doll! If you haven’t seen it in action, you should probably check it out on Spin Master’s website.

Luvabella has advanced animated features with realistic expressions that are unlike anything I’ve seen in the consumer toy space. It appears that Spin Master has reinvented the doll for the modern age, and I think they have the potential to fly off shelves in the weeks following their October 1, 2017, release. Luvabella dolls have incredibly sophisticated technology, and because of that, the toy won’t be cheap, but I still think it’s going to sell out fast, and that’s going to mean a Q4 for the record books.

Bottom line

Spin Master is a growth superstar that’s now a member of the S&P/TSX Composite Index. The company knows how to innovate, and because of this, many awe-inspiring products are expected to come out of Spin Master’s pipeline on a consistent basis, fueling explosive growth which’ll likely lead to market-crushing returns over the short, medium, and long term.

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Fool contributor Joey Frenette owns shares of Spin Master Corp.

 

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