Shopify Inc. (SHOP.TO)

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.

Numbers come out tomorrow. It broke out and then came back to test the base. He is looking for the high just over $200 to be a resistance level. It will be interesting to see how it reacts tomorrow – does it sell the news. Below $149, it would change the story for him.

(A Past Top Pick on Aug. 30, 2017, Up 26%) He's lucky he made money on this, because of Citron's activism against Shopify. However, this got stopped out and he regrets he didn't hold onto it. The company continues to do well, but wait till tomorrow morning's earnings before buying. Shopify has moved $26 billion in merchandise up from $6 billion just a few years agao.

The stocks came off rapidly on a short report last year. It seems to be caught now in the Facebook downdraft. This is a buying opportunity but be cautious. You would want to be prepared to hold this for a long time. It is more appropriate for growth investors.

It is a good story, and a phenomenal stock. They address a large market and grow it. It is quite early days, but it is expensive. He has WIX.

Admit he's been critical of it and doesn't understand it as well as his colleagues. He defers to the research of others. This stock's performance has proven him wrong.

He does own this and continues to like it. It is hands down the industry leader in e-commerce. He trimmed the position as it became a large holding in their portfolio. This is a good pullback. There is a short seller trying to connect it to Facebook – ignore that as smoke and mirrors.

How will it be affected by the FB-Q thing. It would be a sympathy trade. It aggressively broke out this year. It has been parabolic. It is overbought and so you should see corrective movements. So long as the breakout above $155 is held you are probably in good shape.

Andrew Left (Citron) shorted it at $130. When will their earnings come out? Maybe 2020. So, you'll have to stomach volatility and be patient. It doesn't help that the short-seller is attacking them again, though he likes Shopify's defence. Still holds this, though he has sold some. He could dollar-cost average down the road.

This stock is way too expensive. It is priced for perfection. Stocks like this can drop $40 in a heartbeat. This company doesn’t disclose its churn number. It also started a capital program in which they advance money to small clients. He wonders whether the loans are merely paying the fees to Shopify and what would be left if the loans weren’t there. In general, he doesn’t like the idea of being in the business of giving loans to your own customers. If you hold the stock and have made money at this level, you should sell because there is a lot of volatility to come.

No doubt about its growth potential, and it has been successful. But you're paying too much for
the future--it's pricing for the future. What if SHOP hits a bump? He wouldn't buy it here, though
you've done well if you bought it earlier. Overall, tech stocks are partly carried by momentum.

Stock has been and will remain on an uptrend. But how much do you pay for growth? Watch it and buy on pullbacks. When it matures, cash will spill out of it.

This hit a record high today. This is a great Canadian tech company but he would not buy it at this level. It is overvalued.. It trades at 15x 2018 sales.