Shopify Inc. (SHOP.TO)

It had a pullback off its highs as it got caught up in the tech sell off. Short term it is a good buy, but it is an anti-value stock. It is a very rich valuation. It might be an interesting short term trade.

It is a growth stock, very well positioned, but it is a momentum stock and the valuation is too high for her. She would not be buying it and might trim back if it is a big position.

He likes the business model. The company has done exceptionally well and is providing an important service. Has always had a concern in the back of his mind that if Amazon (AMZN-Q) really wanted to get into this space through their own marketplaces, this company would be vulnerable. The stock has done exceptionally well and its valuations are extremely lofty. Investors have to be aware that when you are paying high multiples, a bump in the road could be pretty painful.

Platforms for commercial entities. A great Canadian success story, and has very good legs on it. He would nibble on this at these bad pullbacks of $10-$20.

He likes this company. Trades at about 12 or 13 times revenue, and is riding the Amazon (AMZN-Q) wave. You have to keep your exposure in perspective. This is a company that, if there is a market correction, will get whacked pretty hard. Just use caution.

He likes this. It has a really good platform. It was clearly designed on the desktop, but they made efforts to put it on smart phones. Overall, it is a strong name.

The market cap is around $12 billion. In the grand scheme of things, everyone knows that Amazon (AMZN-Q) is eventually going to buy these guys out. The growth of this thing internationally is fabulous. He would scale into this and not buy into it all at once.

Probably one of the most expensive stocks in Canada. It is going to lose money this year, negative $.18 and supposed to make money next year, $.22. The US momentum crowd has this now, and it probably will go higher. As a value manager, he doesn’t own this.

This just broke to new all-time highs today. Whenever he sees something like that happening, particularly with momentum stocks, then he puts a special StockTwits (Newsletter) to it. This one is a winner, so stick with it.

This brings to mind a technique that a lot of investors don’t use enough. If you want to make money in the market, there are 2 ways to do it. One is to be a value investor, and the other is to buy the “high list”. A stock like this is hitting 52-week high after 52-week high. When this happens, it tends to keep on doing that for a long time. As a retail investor, an easy way is to look at this list, and you are probably going to be faced with a pretty short list of things to buy.

He likes it. They are building an ecosystem where they are bringing partners together. They are at a near term top and you can tell because of their timing of issuance of stock.

A great Canadian growth story. They have effectively found ways to leverage companies and entrepreneurs who are wanting to sell more and more things on the Internet. Feels it is a company that will continue to grow and be successful. Not a cheap valuation, so as a value investor he doesn’t look at these higher multiple stocks. If you saw a pullback in the market, that might be an opportunity.

On conventional valuation metrics, this looks expensive. There are no earnings, the EBITDA is negligible. Even on next year’s forecast, there is only $.14 or so of earnings and about $14 million of EBITDA. However, this is not a conventional company, it’s a company that is growing its top line at 90% to 100% a year. They have a dominant position in their sector.

A really interesting company, and he continues to buy shares. They did an issue this week, which spooked some investors, and the stock dropped 10%, but opened up 2% at the end of the day, for a 12% swing on the day. That tells you that there are a lot of people that want to own these shares. He likes the sector and he likes this company.

He took little flyer on this. The opportunity is to not only grow their business through small entrepreneurs starting up a retail website, but also they get to data mine all the transactions that are going on and start to get stickier with their retention of clients. His 1^st purchase was a half a position at $83. If it gets to $160, he will automatically Sell half, and then let the rest run. They just did an equity issue today to raise cash for corporate purposes, which drop the stock by about $2 a share. If it started to go too far, too fast, then he would get a little concerned.