Shopify Inc. (SHOP.TO)

An excellent company. He would recommend you Hold or perhaps even buy more on a pullback. There is some risk with a border adjusted tax, but that is probably not going to happen, or at least not the way people are looking at it right now. A great company with a good service offering.

This is the kind of “knowledge” business that isn’t going to be bothered by 20% cross-border taxes. It could grow in the US. It provides a service for small businesses, so that they can have the same fire power as some of the big guys. Thinks it has great, long term growth prospects. This is one you can buy and put away, and 5-10 years from now you will have made a lot of money.

In recent results, sales grew like crazy, but unfortunately expenses also grew. Analysts have shaved estimates for earnings. Expected to lose $.28 in 2017, and to improve to positive $.19 in 2018. Against an $80 stock price, the 13X Price to sales multiple is somewhat breathtaking. It is a bit of a challenge figuring out what a reasonable price is.

This will soon be a great company, but he finds the valuation they receive interesting. Unfortunately, they don’t make money yet. They’ve been losing money every day so far. Have a lot of cash on the balance sheet and are rapidly increasing sales, and a year from now they should be profitable. Feels the valuation is out of control. If we get any kind of pullback, look for a sharp correction because there is no earnings support. Even looking out over 5 years, he can’t justify the valuation.

Has been hitting record highs recently. We have a nice trend, but that last leg is something you don’t want to pay up to. They are open to a pretty decent haircut. He has a target of $100. It is framed by the market. It is a higher beta. Try to get it in the $60s or low $70s.

This would be seen in Canada as one of the premier tech growth companies out there. They power a lot of e-commerce websites of companies that want to do more business over the Internet. As more and more people want to shop online, this company is well positioned to do that.

Canada’s most dynamic growth story. It is Canada’s leading e-commerce enablement company. They are involved in things like payment solutions for online merchants, order management systems, inventory and promotion management systems, as well as more recently into shipping. Just reported great numbers. Management has predicted they will break even by the 4^th quarter of this year and should post revenue between $580 million and $600 million. (Analysts’ price target is $75.71.)

This is really financial-technology, the platform for small and medium-sized Internet retailers that are selling their products. An enabler of Internet commerce. Growing very rapidly. In the very near term, it appears the market is favouring value over growth slightly more.

A name that a lot of people have been looking at or investing in. He likes this. The last big run was pretty much due to their relationship with Amazon (AMZN-Q). Wouldn’t be surprised if it was taken out at some point by Amazon. The stock is not cheap, but you have to look at the growth rate against the valuation. If the PEG is not much over 1.5-2, you should be okay.

A great Canadian success story. Had an amazing year last year, so it is very hard to keep up with those types of comps. They enable small and medium-sized businesses. Because that is the largest actual part of the market, this company will continue to grow with those customers. On the larger size companies, they have done some deals to help break into that market. It is going to be very hard to repeat the performance of last year, so people should moderate their expectations somewhat.

This is not a value stock. It hit a new record high on the TSX today. He would not buy this until $50.12. $5.00 is his model price. Earnings are coming along quite nicely. Their revenue is steadily increasing.

This is for people who want to take a little bit of risk. Based in Ottawa and services through the e-commerce large and small create website. A small company can get in here and get all the same firepower that a larger company has. They have good feedback and good connections with the card issuers. They are also in the US with the big guys. (Analysts’ price target is $68.16.)

Recently added this to his “small-cap model” when it broke out through $65. Had a fairly large move, however he thinks the company can continue to add users. Feels the runway for them to add more users is long.

As Amazon (AMZN-Q) is destroying the rest of the retail world, this company is going along for the ride. They facilitate online retailers to use Amazon. They sort of transition a company into Amazon, to help with fulfilment, branding, marketing, searching, etc. Revenues have doubled over the past couple of years and will probably double over the next couple of years. Sitting on $400 million in cash. (Analysts’ price target is $68.41.)

This has done well since going public. There is a lot of momentum behind it. They are in the right space in terms of providing all the back-office systems for online retail, a sector that is growing very strongly. As a value manager, it is difficult for her to buy names like this, because there is so much momentum and the valuation is very high.