Kinaxis Inc (KXS.TO)

Has owned this on and off over the past couple of years. It's a high growth company, and yet he feels they are still just scratching the surface. Probably have about 100 clients, and there are probably 2000 fairly big companies out there, that they could go on. Once it is signed on, a client tends to get bigger. This company will probably get acquired at some point in time. (Analysts' price target is $89.)

A software company that has built a better mouse trap in logistics. Their software is gaining a lot of customers and they are able to grow revenues for their customers. This is a perfect time. Over the long-term, they are in the right space. One of the higher growth companies on the TSX. As long as you understand there will be higher volatility over a 3-year timeframe, he thinks this is going to do well.

A software supply chain management company. The stock went from about $90 to about $60 after they lost a customer this year. Investors thought the game was over. One customer came around and they had a good quarter. Business is really, really quite strong now. He likes that they are seating the global market. They get a customer that buys 50 or 60 seats for employees, likes the solution and then comes back and buys more and more. These are multinational corporations with the potential for giant, giant orders as they expand. The company is sitting on $150 million in cash. It's not cheap, but is one of the companies where you have great growth and a great balance sheet with a great management team. (Analysts' price target is $87.50.)

Just lost a big customer in the far east, and the market got really concerned, but it really looks like it was a head fake. Their recent earnings growth is still there and they’re partnering with new customers who can help sell their products. This and Shopify (SHOP-T) are your 2 larger cap growth tech companies out there. Now that Shopify is seeing some issues, some attention may be turning back to this company. A volatile name, but if you can look out past a year, this company is going to do well for shareholders. (Analysts’ price target is $87.50.)

He likes it a lot. They are disrupting the supply chain industry. They are well managed and there is a lot of insider ownership. He does not think the current issue with a customer will impact the company.

This has taken a big tumble. A couple of months ago they announced the loss of a big client. This is the problem with high risk stocks. When you buy a very high valuation company that really has only one major product line, it can correct very severely because of something happening. The stock needs to be much lower before it would be attractive to him.

It continues to do fairly well. Last quarter they had a hiccup in that their growth slowed down a little. In the last quarter they talked about a large contract that went cold on them. Everyone thought that was Samsung (SMSN-LSE). He has not seen much visibility around that. He would like to see that acceleration again in their numbers. Longer term this company has tremendous growth opportunities. They will probably be taken out by one of their competitors.

Sold this in late June. The issue is that they did an earnings report in August, and everybody was disappointed and they lowered their guidance. The main culprit is the loss of a very good Asian client. It wasn’t anything the company was doing, but that the Asian client wasn’t paying their bills. They have more and more partners penetrating more and more markets and, as a result had to pay out more in commissions. It will end up shooting out a better share price. However, the negative is that expectations are extremely high. He would like to get back into this at some time.

Provides a very specialized ERP system that tends to be focused on warehouses. If you have a complex distribution system, this company will come in if you can’t get it to work through SAP (SAP-N) or Oracle (ORCL-N). The stock traded off in the last quarter, largely because of issues with Samsung. The street is not sure if this is a one-off with regards to Samsung, because they wouldn’t discount to the extent that Samsung wanted. It has been a very high growth story in the past, and has been trading at lofty multiples. When you hit a hiccup and you have a high multiple, you get a big correction in the share price.

Recently bought this in the low $70. It peaked at around $90, and then sold off to the mid-$60. He waited for some technical strength, and then entered the name. They are involved with inventory management software. Sold off fairly heavily recently, about 4% on significant volume, so expects this is a good entry point.

A giant in software. A highly specialized company dealing very, very big in Fortune 500s, etc. You get a tiny piece in the 2^nd half of the year on margins and a suspended disputed major client in the far east. (Analysts’ price target is $85.)

This fits into software as a service or Cloud-based software. They have software they sell to large corporations to help them manage supplying to their customers. 80% of revenue is recurring. 65% of the revenue is subscription based. This company will probably be bought by a large enterprise software company. (Analyst’s price target is $100.)

A great Canadian tech name that nobody seems to talk about. Essentially does logistics software. It looks like they have built a better mouse trap. They are stealing business from the likes of Oracle (ORCL-N) and SAP (SAP-N), so they may be a bit of an acquisition target. If a value investor, you are not going to be comfortable with this and will not want to hold it. However, if a growth investor, this is a name that in 2 years’ time is expected to double revenues. If they do that and then do it again in 4 years’ time, that valuation is going to start to look pretty cheap. He likes stocks that show good momentum. This has good potential.

He missed them. They have software that helps companies deal with inventory levels. He owns a similar US company (MANH-Q). KXS-T trades at a relatively high multiple. Their products have a certain level of stickiness to them. Once they get a customer, that relationship is sticky. Wait for pull back to buy them.

(Top Pick May 6/16, Up 47%) A solid software company with orders getting bigger. He would not rule out their being taken over down the road.