Shopify Inc. (SHOP.TO)

It is very expensive. Look at it as a business. It has a place. It has a crazy multiple. It is awfully dangerous. It is too much of a gamble. Take partial profits if you have some.

A Canadian play that is in one of the most important themes of a secular long-term shift to web commerce. It provides a platform for small to midsize e-commerce companies. They continue to get stronger. They are so strong that Amazon (AMZN-Q) shut down their competitive product to Shopify. In the last quarter, they went from 400,000 users to 500,000 users, companies selling things on the web. Earnings were up about 85% and revenue is up 75%. The downside is that it is a momentum driven company and trades at a very high multiple of about 10X EBITDA to sales. Realistically, if they were to miss or have a miscue operationally, the stock is going to get hurt.

A Canadian success story. He doesn’t own it, because it doesn’t pay a dividend. If you are going to buy this, take a half position and wait for some sort of catalyst to take the other half. Thinks you will do well in the long-term.

Quarterly results came out and the stock has been going sideways. Had an 86% increase in 2^nd quarter revenues. Still not earning any money, but they seem to have a big opportunity in the market. There is lots of room in the market they are operating in, to expand their services. If you want something that is risky, but has lots of potential upside, this is a stock for you. (Analysts’ price target is $151.)

Hasn’t been around long enough to have seasonality. Technically, it has had a huge run, and during the last little while has formed a trading range. In the last 3-4 weeks, it started underperforming the market. Momentum indicators are starting to roll over, which is not good. If you own this, watch the support level very, very closely, because if it breaks that, you will have the establishment of a double top pattern. He would take money off the table.

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.