Lightspeed Commerce Inc (LSPD-T)

Restructuring to focus on higher-profitability segments. Yesterday's announcement on job cuts, though painful, was the right business decision. Strategic review is ongoing. Pretty good assets, need to focus operations.

A top pick because it could be bought out. Look at Nuvei. Is down 85% from its peak. LSPD is focusing more on larger customers. They finally broke even on cash. If a deal happens it will happen in 3-6 months, or else shares fall.

If you don't own, don't buy. If you already own it, and it's in a registered portfolio, perhaps hold on (as you can't take advantage of capital losses). In a non-registered portfolio, there are better places to get more visibility for the future.

One product, the POS platform. Too volatile and uncertain. Earnings and revenues are lumpy. Better choices elsewhere, despite the low valuation. He needs more sustainability and more product offerings. Management turnover.

Payment technology business a tough place to invest in. Hard to determine who will be winner in this space. Also, a lot of competition which makes it hard to earn profits. Better options for investors in the markets. 

Replaced CEO with founder, hopefully will provide some stability. 12-month price target of $22. Volatile. Favours SHOP on e-commerce. 

Canadian based restaurant and retail software provider. Company not executing on growth plan. Chas flow and revenue growth not growing. New CEO coming back could be an inflection point going forward. Too early to tell on growth going forward. Watching stock, but will wait to investment( more deliverables achieved). 

They've had a rough 2 years, but reported their first quarter of positive EBITDA last quarter.. Are focusing on payment services, with 25% penetration among customers. It's a high-margin business and numbers should continue to improve. He likes it.

Nice bounce over last 7-8 weeks. Bit of runway left. Very highly geared to interest rates. Buy on dips: closer to $24-25, and if you're lucky $21-21.50.

Very volatile. Maybe, doesn't know. Are a smaller Shopify. A small holding for him. Would like to see consistent reporting and becoming profitable. Are in a competitive space, too.  Okay as a trade, though. Buy at $17.50, then more at $17.

Nonprofitable tech is taking it on the chin. Likes it. Continues to grow revenue. Company is projecting EBITDA-positive in 18 months. Interest rate direction can significantly impact what investors are looking for in a stock.

Part of that is the size. US investors probably don't know LSPD, whereas they do know SHOP. SHOP is the 800-pound gorilla in Canada and the US for small companies that run their own website, as well as for big companies that run a website and do e-commerce. 

LSPD has more of a niche in restaurants. They will be successful over time, but there have been challenges with restaurants. Over time, it should catch up to SHOP as far as percentage return goes.

It's done pretty well, though many have lowered their expectations. He targets $24. It was a history with financial reporting, so do your homework on this. Buy this around $22, then add more below $20.

Too narrow a focus for him. High valuation. Profitability is here and there. Lots of room for expansion. He likes tech companies with better recurring revenue and lower price points.

(A Top Pick Jun 01/22, Down 28%)