Shopify Inc. (SHOP.TO)

A fantastic Canadian story. They continue to deliver on revenue growth. One knock is it's always very expensive using traditional metrics, as short sellers note. He's owned it in the past and wish he still did.

He is a big believer in this company as it enables small internet based retailers to grow their business. They have 650,000 customers and have sales revenue growth of 70%. They are now targeting European markets and expanding their business to shipping, lending and other services. Yield 0%. (Analysts’ price target is $196.38)

He wishes he could see the long term. It is difficult in technology land. 10 years ago, the company didn’t exist. They demonstrated great success growing and helping small business online. But they still are not making money in the accounting sense. Maybe if they continue to grow their 200 times P/E is justified. It is a momentum stock.

(Past Top Pick on August 30, 2017, Up 55%) It hasn't been an easy ride, especially if you use stop losses. He's been in and out of it the past year, but remains a big fan. Clients include Facebook and maybe Alibaba. The CEO owns 8% of the company. Their big issue is a short seller questioning the health of their accounts, but the core of their business remains strong. The only headwind is Adobe buying Magento as a direct competitor.

(A Top Pick Aug 30/17, Up 39%) The gift keeps on giving. It is volatile but a great growth story. A comprehensive ecommerce enabling business. Merchants can sell on all social platforms. They keep improving their ecosystem. They have a significant competitive advantage over competitors. The knock is that it is expensive. It has been successful and people like to throw stones. Short sellers try to put a dent in it. It is likely to be a much bigger company in the future.

It has seriously pulled back since June 20. He'd still avoid it. Great company, but not a great stock. It's trading at more than 200x next year's earnings, so it needs a lot of growth to meet that.

His model price is $20 based on earnings. The market loves growth and values this stock very highly. He would buy when it falls below $100 US. (It si currently $155 US). Be patient and wait for the pullback.

He bought them at $65, sold half the position at $120. Once it brought about the previous high around $136, he put the position back on. He thinks it is fairly extended here. They are not generating net income yet. He thinks they are likely to be acquired by a large player, like Amazon. It is too expensive to buy at these levels.

It trades at a lofty valuation. He would not buy it but these things can defy gravity for years to come. There may be a lot of churn in the business. Red flags were raised by them financiering some companies in the tech business. These things come down hard and fast if things don't work out.

This is a wonderful company. From a long-term point of view, he recommends it. More shopping is moving to the internet. Shopify enables smaller merchants to get on the net and the revenue stream continues from them for a long time. However, the stock trades at lofty valuation which is causing volatility, as is a vocal short-seller. There was a recent jump in the price of the stock and there will be more in the future.

He owned it earlier this year, but took profit after a bearish analyst report. He would look to be a buyer near $110. He likes the way they are extending their runway with new extensions to their business, but seems them as too expensive presently.

He thinks $175 is the stop point. He does own it and thinks it could trade to new highs above $200. This is not a horrible entry point.

So many things good happening in technology in Canada. He admires them even as he doesn’t own is as he owns Amazon Inc (AMZN-O). They are democratizing sales. He prefers a more diversify play.

Back end office for e-commerce platform. They partnered with Amazon (AMZN-O). They have done a great job growing their business model. But they have no earnings. No free cash flows. Trading at 10 to 11 times forward sales. Interesting but not even near a valuation level that they would feel comfortable. (Analysts’ price target is $190)

He's taken aback by its high multiple and with how fast it's grown. He's skeptical when companies grow this quickly. He applauds there being a Canadian tech company, because there are so few, but there's no room for error. One earnings miss will hurt them badly.