Shopify Inc. (SHOP.TO)

A very solid, up-and-coming Canadian tech company that is pretty established in their niche, and just emerging into profitability. However, the near-term opportunity is gone. It is probably into a 2-3 year period of backfilling of valuation now. They are going to have to produce some profits to backfill the $10 billion valuation they've received. He would look elsewhere. If you own, consider taking a few profits.

Chart shows a long upward trend through to October when it sort of got broken. However, a new upward trend has been established. The stock is pretty volatile, and the indicators are starting to turn up. He would look if it broke through a little downtrend and took a stab at $154.

A Buy or a Sell? A great business. They have a great product trying to facilitate the online merchants transition for small/medium sized businesses. He wouldn’t buy at this point. Had a tremendous run over the last number of years. It’s one they are watching and perhaps on a pull back, they would get an opportunity to buy into it. Valuation seems full at this time. It’s hard to get excited when they don’t see meaningful upside.

Doesn't really understand how you can just keep putting out websites and making money. Feels the concept is fundamentally flawed. To him the franchise is not a sustainable long-term model.

Got beat up by the Short sellers, but their business is good. They've never missed a quarter and have almost $1 billion in cash. They are going to be profitable next year, and the earnings are going to grow out about 400%-500% on a per share basis. They are now the dominant player in facilitating online merchants. Has a tie with Amazon (AMZ-Q), which is always risky, because of Amazon's power. The Short thesis was that it was a multilevel marketing company, i.e. if I joined Shopify, and got you to join, I would get paid. That was simply wrong. A US hedge fund just picked up 8% of the company. (Analysts' price target is $151.00.)

(A Top Pick Feb 3/17. Up 94%.) Took his positions out at around $122 when he felt it was becoming a target by activists. It has yet to make any earnings. If it sold back under $100, he would have another hard look at it.

(Market Call Minute.) This has been consolidating. It's in a very good theme. He would buy this stock.

The growth should continue but he questions the amount of churn that they don’t disclose – businesses that start up and don’t survive. The market is starting to question these issues from the volatility.

A brilliant concept, although one US analyst has called it a Ponzi scheme. From what he knows, he doesn’t think that is the case. Long-term, if this company delivers on its promise, it could be worth a lot, but you are paying for that future now, and have to be prepared for volatility.

He still owns it. The story is not broken despite the short report. They don’t have the income or ROE metrics. They are a bit of a rule breaker. They are growing like gang busters. Some of their merchants should be VERY successful. He thinks SHOP-T will be successful.

If it closes below $117.50 on a weekly basis, there is a good chance it is going to have some further downside. The chart shows it has support at around $111.

(A Top Pick Jan 11/17, Up 110%) The short seller’s research was nonsense in his opinion. They are a one stop shop for a small business to get into ecommerce. It is a powerful emerging technology player in Canada.

He gets the sense that many investors are buying stocks like this with no view as to what the earnings, cash flow or growth is going to be. This is in the news every day, and is going up almost every day, and that is attracting investor flows, so you are not buying a company like this for any fundamental reason, except thinking that someone else is going to come along tomorrow and pay even more before it.

Has gone from one of the best performing stocks, to becoming much more of a trading stock. She would be shocked if Citron were to give up on their Short. Thinks that when the stock is really hammered you buy some. When there is a really good day and it is up $5-$6, then you let it go. Doesn't think it will make new highs over the next year. It's going to have a hard time.

Valuation was at a ridiculous 12X forward revenue, so had Shorted the stock. Then the report came out questioning the strength and the viability of their operations. This is a real business operation, a real company, and he doesn't think there is any fraud or anything like that. Right now, you are paying for probably the best growth scenario through to about 2020, and that is where he is uncomfortable. He can't see buying this because he expects growth is going to slow. He did cover his Short, and will just watch this from the sidelines.