Shopify Inc. (SHOP.TO)

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.

This is the most dynamic tech story in Canada, bar none. It was one of the hottest IPOs in 2015. A dominant platform player, and their solution is e-tailing in a box. Their core market is the small-medium-sized businesses, and the solutions they offer are web development, payment processing, order fulfilment, inventory management, sales promotion, management, shipping and even things like receivables and financing. Revenue grew at 89% in the latest quarter. While not profitable yet, they are making all the right strategic decisions, very reminiscent of what Amazon did in its early days. (Analysts’ price target is $68.42.)

(A Top Pick Nov 6/15. Up 29.99%.) He still really likes this and would buy more of it. This continues to try and deliver, and has the potential to do very well.

(Market Call Minute.) He likes the company, but it is super expensive.

A very successful Canadian Tech company. This has done very, very well. If you are helping people to sell on the Internet, you are in a very good space.

(Top Pick Aug 9/16, Up 6.05%) They have a number of avenues of growth.

In spite of the fact that sales were up 62%, earnings were down 14%. He understands the company has an annualized sales run rate of well in excess of $200 million, and analysts are still expecting they are going to lose $.10 in 2017. A PE in 2018 of 161X. Great product, growing like crazy, but unfortunately not making a ton of money. An extremely expensive stock with strong underlying sales growth.

He likes this a lot, although it is not necessarily cheap. Had bought this when it was still private. What is going is very, very positive. They allow small manufacturing and other service organizations to become, in a sense, a part of the Amazon network, which is a huge advantage, and are growing very, very rapidly because of that. He remains bullish and positive on the stock, although he has been taking some profits.

#1 in North America, beating out some of the competition. They have 300,000 clients. They can take a small shop operation and give them all the horsepower that the big guys have. There is lots more market out there that they can penetrate.