MDF Commerce Inc. (MDF-T)

eCommerce aggregation business.
Does not own stock.
Growth and profitability not strong enough.
Paying down debt which is good for the company.
High valuation would suggest better names to buy.

Still owns it. Came down with all tech stocks, and they made a costly acquisition. Also have an e-commerce business with clients like Sobeys; he thinks MDF may sell this and become a pure e-procurement company. He sees upside, because they have valuable businesses they can sell. Shares remain cheap. Growth will resume in the US with a recently acquisition.

(A Top Pick Apr 28/20, Up 137%) They offer e-commerce services for big, complex companies like Sobeys and IGA (vs. Shopify which serves small businesses). They just scored a huge deal with Aldi (https://www.globenewswire.com/news-release/2020/12/14/2144279/0/en/Aldi-signs-agreement-with-mdf-commerce-for-the-implementation-of-Click-Collect-grocery-service.html). MDF also enables supplier to bid on government contracts. They do a lot of M&A in this segment. About 80% of sales are highly recurring, yet the stock trades at only 2.5x sales vs. Shopify's 35x. True, the smaller MDF isn't growing as fast as the bigger Shopify. MDF should be trading much higher. Growth is speeding up as businesses move online.

(A Top Pick Feb 24/20, Up 179%) They just cut a deal with a European food retailer. They are like Shopify. They announced a huge contract. The pandemic has accelerated digital transformation for a lot of retailers. They have a strategic sourcing platform to match suppliers with government contracts. It is at about 2.5 times revenues, so dirt cheap.