Shopify Inc. (SHOP.TO)

Has a hard time justifying the valuation. He likes companies that have earnings and are making money. There is probably a tremendous amount of growth that the company should be able to bank on for the foreseeable future. It really is a kissing cousin to Amazon (AMZN-Q) if you think of the growth potential. This serves about 500,000 customers and he pegs their addressable market is anywhere between 40 and 50 million customers. He would want to make sure the cash flow growth and earnings growth can justify the current share price when the multiple compresses.

The market leader in what it does. They help small businesses get an online presence effectively. They’ll become profitable eventually. At these levels, you are factoring in 10-20 years of growth, and taking a lot of risk. The company has not made a penny of earnings yet. If it went down 50%-60% he would be interested, but not at these levels.

A great company and has done fantastic, but it may not be a great company to invest in at this time. The chart shows it broke down through its upward trend in June, so we are actually in a consolidation phase. In June and July, the chart is showing lower highs, which is bearish. It might break below its current level. US technology stocks saw a weak June. You want to see this break above $135 before you get excited about it.

Had recommended this when it was in the $60s. It has had a good run and is now taking a bit of a rest. We’ll have to wait and see what the next earnings look like. They’ve been coming out with spectacular increases in customers and earnings. It is still a risky stock in terms of being a junior and there is competition in the US.

This is speculative. They have yet to make any money. There is no multiple. It is such a great company, though. You could buy some, but just a small piece. Don’t go overboard.

It has been a red hot stock. It has been a disruptor stock. It is more of a growth type name and does not pay a dividend. It has some pretty interesting secular growth associated with it. They upped their guidance for yearly revenues. They report in August. He thinks their trend is still consistently with them.

This has been a darling. It first hit around $130, and then peaked at around $135, but then has been rolling over. However, underneath that, it has a very nice upward trend. He wouldn’t be concerned unless it broke $110. If it breaks $110, it will probably go down and test its longer-term deep support at around $85. It is really hard to tell in the short term. You want to see it hold here, or else it is going to pull back to the breakout level.

The stock has done very well and they are in a great sector. There is great growth in e-commerce. As a value-based investor, she doesn’t own the stock. It is a momentum growth stock, and it is hard to justify buying it on fundamental valuation multiples.

They had a great move, but it is not cheap. It is really a Canadian success story and there is room to grow. It is a name that people sell when they rotate out of the space. There is a floor around their recently equity issue. It is his largest position in the fund. They have shown their ability to deliver.

There is a sort of a head and shoulders pattern and now we have made a lower high and a lower low, so the trend is breaking. At $110 there is big support. If we break that then we should come back to the next area of big support at $60. Just sit back and watch it.

A successful Canadian technology story. They provide the backend for small businesses who wish to have an online presence. Lately this has been consolidating. If you get this in the $110-$112 range, that would be a pretty good entry point. If you own, continue to Hold. They recently signed a deal with Amazon (AMZN-Q).

Buy or sell? This has pretty much doubled, even after the 15% pullback in the last few weeks. One of Canada’s leading e-commerce names, providing a platform for small/medium sized businesses to get online. They’ve done very well and are rapidly expanding. Trading at a level that is difficult to justify by near term earnings. If you are confident they can continue their leading position 5-10 years from now and dominate the market, it is fully justified to have further upside. Shorter term, it is more picking and choosing an entry point. If you have a profit position, hold onto your core position and take some profit, and maybe buy back when it comes down a little.

This has done very well. An interesting business. They have grown and have proven to the market that it does work. This is a tough entry point. If it moved up another 10%, he would be inclined to sell.

Getting beaten up a little lately because of the rotation out of technology. Longer-term, this company makes a lot of sense for Canadian investors looking for a strong Canadian tech name. They are doing extremely well and their earnings are moving forward. There are no earnings at this stage, so he doesn’t own this.

It is one of those stocks he would not normally be able to buy because the valuation is so high based on earnings today. They are continually investing in growth. They cater to small to mid-sized businesses. They have to keep marketing. They are trying to go up-market to larger corporations. It is nosebleed valuation.