Descartes (DSG.TO)

Model price is $18.95, so it is at a 60% premium. He would not worry about earnings too much next week. If you are a long term holder, continue to hold it.

Canadian, but going global. Acquiring companies that do logistics and customs documents. If you bet that the world trading system is going to get more complex, you want to own this one. Great growth story, great price. No dividend. (Analysts’ price target is $44.10.)

Descartes is a fine consolidator. They make it easy for companies to ship across the border. They've been expanding their range of services and geographies. They are disciplined in their acquisitions. He likes this company.

He would consider to hold this. His model price is $19, so it is 50% above full value. Maybe the fundamentals catch up on the stock it may retrace.

Involved in retail e-commerce from supply chain management to tracking to logistics. This is a consolidation play. They are uncorrelated with the broadder TSX. They could acquire with cash flow that's accretive. It sold off the last few quarters with a big acquisition that they are confident with. A smart management team. (Analysts' price target $41.91)

This is a fantastic chart, he says. Canadian technologies are finally getting going. He thinks it will re-visit $40 again. You could buy the XIT-T ETF as a proxy for the sector.

A growth by acquisition story that's done very well. Like Dollarama, it's an expensive stock, so it must keep beating its numbers and it missed its last quarter. They probably need to make an acquisition to meet or beat its next quarter.

A great tech company. Does logistic software and focuses on distributors and transportation companies. It looks a bit more expensive when looking at valuation, but they have recurring revenues that are very sticky. Their forecasts are usually what they’ve done in the most recent quarter, which is their guidance for the next quarter. They usually tack on 1%-3% growth per share. That stability is why you are paying a premium for the shares. They just purchased a company, which analysts think they overpaid on, but management has always been very conservative when buying companies. (Analysts' price target is $40.94.)

He loves stocks that slowly creeps up like this one does. It's one you should continue to own.

This is in the logistics business. It has been a very strong performer over the last few years, but has come under pressure over the last few weeks, but pulled right back into the 150-day moving average. Technically it is still okay. He likes the long-term theme. If it broke the 150-day moving average, he would be gone. In the near term, it provides a pretty good entry point.

It has been a good performing company because they executed well. They have a unique position. He missed this one. 59 times forward earnings vs. an industry average of 26.

Downside in case of a correction? It is following an uptrend and testing the trend line. If it breaks the trend line and also the 200-day moving average then it’s a signal to get out. Until then you could probably continue to hold. There would be some support level around $30.

He likes this company. A “software as a service” business model. Has very consistent revenues. For guidance, they say “whatever our revenue was this quarter, that is our guidance for the next quarter”. This usually works and they add a couple of percentage points to it. Trading at a really high multiple, but that’s because they have this great recurring revenue model. Once a customer gets entrenched with their offering, it would be such a hassle for them to switch over to something else. Very consistent for a tech company.

One of her favourite Canadian technology stocks. This grows organically and by acquisition, and through e-commerce.

(A Top Pick July/16. Up 44.92%.) Investors like this name because of its predictability. When a quarter starts, because of so much recurring revenues, they already know what 90% of revenue is going to look like. Because of this, they spend the last 90 days of the quarter trying to get the next 10% in. It is always a non-event when they come out with quarters, and portfolio managers love that, and pay up for it. A growth story and a play on global trade and on increasing returns on cross-border traffic. A very good, long term story.