Shopify Inc. (SHOP.TO)

One of the few tech names in Canada that is a good name to own. There is a lot of uncertainty. I think you will continue to see a lot of volatility. Over the last while it has been marijuana based and their system has held up well for the demand. He is looking at US companies in the teck sector such as Apple or Microsoft. He would look elsewhere in this space.

He likes the story. Loves the company. The problem is that it trades at 7 times next year revenues. Too stretched from a valuation perspective.

Loves the company and he invested early. They'd boasted growth metrics of 115% YOY, but are starting to see a declining rate of growth, though still growing. He sold too early, he regrets. They have a great balance sheet and are not burning a lot of cash. If you really like the growth and name, expect volatility.

(A Top Pick Aug 11/17, Up 62%) A great company, though he’s sold his position. Multiple is astronomical. A higher risk stock. If you’re a risk-taker, pick some up on the dips. But he’s on the sidelines. Not a stock for the faint of heart. (Analysts’ price target is $213.98.)

It is tough to recommend this company when they don’t have earnings or cash flow now. He is looking hard at it, but still feels it is overvalued. He would watch if for a couple more quarters to see how it converts their strategy into cash.

Shopify vs. Salesforce He owns Shopify, though their PE ratio is really high. He uses Salesforce's product. Shopify has had a tremendous run, but he expects competition to hit them, offering a cheaper service. That said, Salesforce's moat is good--it isn't worth saving, say, $30 a month to learn a brand-new business software for your business. Salesforece has also been around longer and proven their staying power, whereas Shopify's stock price is based on future projections. Also, Shopify has a longer runway for growth than Salesforce.

This is a very much loved Canadian Tech stock. This is a rarity. The reason this has been so successful is that they have proven they are excellent in allowing companies to optimize. They have grown their revenues 70% year over year. The question is if the recent rebound is sustainable. They have to surpass analysts expectations. That community is looking for top line growth. This company has always tracked a 4-6% surprise above expected revenues.

It is a tech name that has done very well. Overall his view is positive over the longer term. The world is going more online. It makes it easier for smaller companies to sell wares online. It might have some pretty big gyrations but he is positive longer term.

Great company. Darling of the Canadian tech stocks. Can’t buy stocks for his clients trading at 210 times next year earnings. He’d wait for an earning miss.

Likes it, because he likes infotech (and financials). Since 2016 has been a long-term uptrend. Has seen recent weakness, but he'd add during weakness.

It has a very high valuation. The only way to buy it safely is on a missed earnings target when it retraces by 10-20% --but do your homework on why it missed it target.

Sold in low 100s. Great stock, but speculative. No significant earnings to support the price. Worries about US competition. So far, done a great job. Recent results good, though not over the top. Can put 2-5% of your portfolio in it for fun, but don’t put your bankroll in.

The problem is that it is still very, very expensive on a price to book or a price/earnings ratio. It is still very much emerging. Long term it is a superb company but you are paying for the long term in the short term so should expect a lot of volatility. He cannot advise what to do. It has probably been impacted by recent drops by FB-Q and TWTR-Q.