Shopify Inc. (SHOP.TO)

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.

An example of a company where you should take profits at this time. He likes the company, but it is the kind of speculative stock that is going to get sold off with the Trump slump. However, he would be very interested buying it again if it came off.

He owns a little of this, and loves the concept. This is a situation where a company can give a small retailer the same horsepower as the big retailer. Unfortunately, the stock has taken off and has almost doubled in the last 6 months or so. If you are a little aggressive, he would buy this. It has the growth potential, and they are not big enough in the market that they can’t continue to grow like this for a while.

A great Canadian success story. It enables small retailers to sell online. He wouldn’t touch this here as it is crazy, crazy expensive. The company has yet to turn profitable, but is expected to this year.

A fantastic company. At $125, you wonder where it is going to go. A bit of a mug’s game, but there were a few places on the chart where it brought some congestion in. Instead of typical linear progression, he looks at dynamic regression. If you believe in the name, you buy this for the long-term.

Up almost 110% this year. This has been a rocket ship. A great story about what Canadian technology can do, when it really works well. In investing, you have to have a view as to what something is intrinsically worth. If you think you can sell something to someone else, at a higher price, then you are speculating. Investing requires a discipline. He wouldn’t chase it at its current price.

The concept is wonderful. The down side is that it is trading at a horrendous price to book and has no earnings. It is highly volatile. A great company and a great concept. When the market comes off, these companies will REALLY come off. There is tremendous investment risk.