Descartes (DSG.TO)

(Past Top Pick Aug. 9, 2018, Down 8%) Adding to it and still believes in it. They've bought firms good and integrating them well. They play into e-commerce. DSG is good at crossing borders so they can partner with companies who need someone to manage the paperwork and logistics. And the more complex trade agreements become, the more Descartes will benefit.

Fantastic company and fantastic Management team. Not cheap from a valuation perspective. Will do good deals in the e-commerce space. Very customer centric. Sticky, high recurring revenue story. (Analysts’ price target is $46.76)

(A Top Pick July 19/17 - Up 44%.) She still likes it. They benefit from Amazon (AMZN-Q) that is a client. It is not cheap now. They have a predicable growth of 10%. She would like to see 15%, but still takes 10% predictable.

An intriguing name and wishes he could talk to the CEO about how the global tariff issues are impacting their business. They are a logistics software company – he thinks the tariff issues feeds right into this company. A couple of years ago, as a contrarian, he would have liked it, but now it is too expensive for him to buy.

It has done well. Likes it. It buys smaller companies. They deal with customs and borders for customers who don't want to deal with that hassle. It has a steady growth rate in recurring revenues.

Model price is $18.95, so it is at a 60% premium. He would not worry about earnings too much next week. If you are a long term holder, continue to hold it.

Canadian, but going global. Acquiring companies that do logistics and customs documents. If you bet that the world trading system is going to get more complex, you want to own this one. Great growth story, great price. No dividend. (Analysts’ price target is $44.10.)

Descartes is a fine consolidator. They make it easy for companies to ship across the border. They've been expanding their range of services and geographies. They are disciplined in their acquisitions. He likes this company.

He would consider to hold this. His model price is $19, so it is 50% above full value. Maybe the fundamentals catch up on the stock it may retrace.

Involved in retail e-commerce from supply chain management to tracking to logistics. This is a consolidation play. They are uncorrelated with the broadder TSX. They could acquire with cash flow that's accretive. It sold off the last few quarters with a big acquisition that they are confident with. A smart management team. (Analysts' price target $41.91)

This is a fantastic chart, he says. Canadian technologies are finally getting going. He thinks it will re-visit $40 again. You could buy the XIT-T ETF as a proxy for the sector.