Shopify Inc.

SHOP-T

(A Top Pick Oct 01/19, Up 3%) It's had a strong run this year, but has pulled back since August. It will re-test the bottom of around $400, but he's confident it will rally again. He likes it. But if this shows lower lows, he will reduce exposure.

He has built up a position in the US holding. His price target is $375 US. A recent share offering diluted the shares, but now it trades at $4 billion below enterprise value. He has a 3.5% holding in his portfolio.

Benefits from e-commerce. Nothing wrong with this, but the valuation and stock price are very high. The current pullback amounts to the stock getting ahead of itself. Also, they did an equity issue in mid-September which helped pressure the stock price.

The stock looks to be finding support here. He would be very cautious. He sold out around $450 from a technical point. He still has half a position though. It was a good day today so he will probably buy back the stocks he sold.

Great business, but valuation is extremely high and profits are beyond low. It's an enabler. He wants companies that generate profits. You have to be prepared for the valuation to change dramatically. Too aggressive for him.

Tech stocks will always have air pockets -- momentum comes and goes. They are part of exchange indexes now, so they will benefit when the market goes up (funds need to buy) and when markets breath they will go down.

Initiate a call option for a strike date of April 2020 at a strike price around $340? Likes Shopify. You will pay a lot for the option because the premiums are high, in the top 25%. Shopify has had a good run, though come off recently. Go ahead and do it. It's a speculative move.

The stock has come down. Software is out of favour with a move towards cyclical tech. They missed on earnings due to one time charges. Revenue growth is slowing that worries investors. However, it's a good time to buy here. They just passed 1M merchants and starting to offer loans to them. Has a very good management team with good growth opportunity.

It has performed quite well this year but was volatile over the last few years. Expectations are high so you need a big surprise beat or some news that is not priced in for it go up. He would not buy right before the quarter. The issue is that there are so few technology companies in Canada, that institutions HAVE to be in it. See his top picks today.

He recently sold out of this. Although it has pulled back to the 100 day moving average the long term trend line is holding. He expects the $300 range to hold. He likes their future outlook. A good place to buy here.

Sold out because it's harder for a large company to grow revenue, expectations were very high, valuation was high, and the parabolic technical chart. Too much risk. Back in a corrective phase, but it would have to be about half this level for the valuation to make sense to him.

A real Canadian tech growth story and growing in the US. The question is does it have the legs to be a permanently profitable company? At some point investors need to justify the valuations. He thinks they are at the point to show that sustainability in profits. The IPO markets in the US have recently shown rejections for companies that have not demonstrated a sustainable business.

A tricky stock because they have a great business but the earnings multiple is astronomical. It's a technical growth stock. You're in a very volatile situation. If the market sells off, this will be one of the firsts to sell. It's too expensive.

He added to his holding in the last quarter, still likes the chart. All software has had a correction in the past few weeks, but long-term rgowth stocks will move higher. (Analysts’ price target is $469.90)