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Could Spin Master Corp. Reinvent the Storytelling Experience With its Latest Partnership?

Spin Master Corp. (TSX:TOY) is a fantastic business that recorded out-of-this-world numbers in the second quarter, and the best part is, the upcoming fourth quarter will be another level higher, as the company prepares for the holiday season, which is typically the best season of the year for toy companies.

For shareholders, it’s been a rocky climb in the upward direction. The stock has been quite volatile, with fairly large dips following even larger jumps. It’s been a great strategy to buy on such dips, as usually the concerns that caused them are focused on the short term or may not be in response to any forms of news at all.

Apart from having one of the most promising toy pipelines in the industry today, management has done a terrific job of spotting intriguing opportunities to boost its inorganic growth. The company’s balance sheet is solid, and there’s plenty of cash for acquisitions that will further beef up Spin Master’s portfolio of incredible brands.

Spin Master’s latest licensing partnership brings story time to the modern age

More recently, Spin Master partnered with the Natalie Rebot, the creator of Moonlite, a storybook projector built for mobile phones. For those who are unfamiliar with Moonlite, it’s a mobile phone attachable which makes use of the phone’s flashlight to project story images onto the wall or ceiling. The project was a huge success on Kickstarter, where it raised a whopping $345,700, over 10 times more than the project’s original goal.

“Moonlite has true potential to support the publishing market on a global scale as it’s designed to bridge the gap between traditional and digital books through magical storytelling experience that fuels your child’s imagination.” says Anton Rabie, co-CEO of Spin Master.

Moonlite is innovative and could open many doors towards a potential blockbuster educational product some time down the road. Since partnering with Spin Master, Moonlite has developed relationships with various children’s publishers. Could this be the future of goodnight stories? It very well looks like it, and the best part is, parents won’t need to fork out a huge amount of cash on a projector. I believe Moonlite may evolve into a product that’s a must-have for parents across the globe.

Bottom line

Spin Master keeps delivering innovative creations which amaze not just the kids, but parents as well. That’s a formula for success. Each holiday season, I believe we’ll see Spin Master’s lineup of innovative toys get stronger as the company grows organically and inorganically through the years.

This is definitely a stock you want to buy now with the intention of holding it forever.

Stay smart. Stay hungry. Stay Foolish.

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Fool contributor Joey Frenette owns shares of Spin Master Corp.

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