Shopify Inc.

SHOP-T

It is a fast grower and the market is rewarding them. It has done a good job. He is happy holding his position. He might take some profits as it grows. It is executing well and at some point could get acquired.

SHOP, Canadian vs. US. Can't explain why one is up and one is down, unless it was the recent holidays.

He likes its business idea, but not sure about the stock--it's valuation is very high. He'll buy Amazon or Visa, but Shopify's sky-high valuation is too high. No doubt they've had amazing growth, but they're not profitable.

A great chart with a big run over the past year. It had a long base through 2018 at $180 and that supports its strong rise since then. (Analysts’ price target is $344.66)

In a TFSA? Don't. Hold stocks in a TFSA that you will hold for a long time. An interesting company for a covered call. Where SHOP is now, he would do only a covered call. It's run up so much that there's downside risk.

He sold it as a triple but it kept on going. It is a Canadian darling. As it moves up in market cap, the ETFs have to continue to buy it so it is a self-fulfilling prophecy. It is a good company. There are competitors coming in and the street is looking for one of them to take out SHOP-T. They have done everything they said they were going to do. He has re-deployed into technology in the states.

He started to get into at $30.00. Their guidance is conservative. Trades at 312 times 2020 earnings. But trades at 13 times enterprise to sales. Can go higher over the next years. He thinks it is a Google or Facebook.

It consolidated for much of 2018 and is now definitely up. Caveat: it's a very steep rise now, implying that it's overbought. If it pulls back, it could return to $270.

Why is it being favoured now? Shopify has been taking away a lot of business from Amazon. That said, the run in the stock has been incredible--and incredibly expensive. There's talk that Amazon wil buy them, but he doubts they would do it now. Hats off to them as a Canadian success story. They report tomorrow.

It's had a miraculous run, a great Canadian growth story, a superstar. But he's a value investor so it's hard to like their valuation. Maybe take some money off the table, but you can't argue with their success.

He's a value investor, so SHOP doesn't fit for him. Earnings are very small vs. its market cap. Buy if it falls back to $100, but it has sailed far past that.

It has been going up after consolidating in late-2018. Since then, it's broken to new all-time highs. He likes this chart--fantastic. Now, it's consolidating after a rally. From here, it can go either way, but he expects it to break to the upside in May-June.

What price would you be comfortable to get in? He never owned this company. The valuation is too high. Trading at over 400 ties earnings with 37% growth rate. In the US there are many more names.

He was in and out of the stock over the last 5 years. But now it's very expensive. Now you're over 20x sales. Doesn't see the argument that they'd be taken out at this multiple. Growth has slowed a tiny bit. Too rich for him.

It got just added to the TSX 60 index. A few short stories on it but still continue to rise despite the negativity.