James TelfserKinaxis IncKXS.TOTOP PICKJun 03, 2020

It faced some financial headwinds in 2020 and lost money in 2021 but then did better. It looks like profits will continue to grow and he considers it a 'show me' story.

Insider ownership not high enough to justify investment. Return on capital also not high enough. No debt is positive. Margins also trending down. Would give this company a pass for now. Neutral company based on first glance. 

In the recent quarter, revenue grew 25%, annual recurring revenue was up 22% and adjusted EBITDA margin improved to 14% from 13% last year. The company continues to show solid execution with strong organic growth, and the Saas business model is starting to generate meaningful cash flow and profitability, and strong switching costs for customers. We still like the name, and we think the recent drop may provide investors opportunity to average into the position. Since KXS never issues new shares (it has lots of cash) it does not get much broker attention and thus can sometimes 'drift' lower.
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Kinaxis is at the top of its class. It has a great product but is pricey and can be volatile. It offers high growth but he is more of a value stock investor. He owned it for a long time and took profits at $180.00

Will continue to do well. Growing really fast. Hit an EPS growth target of 15% every year for the last decade. Really likes the story.

Nice niche. SaaS in the cloud, but caters to supply chains with a rapid response platform. An example of SaaS that can incorporate generative AI. Swings between profitability and not. For such a big company, it should be more consistent. Price target of $220.

Strong company with good underlying economics.
High share price a concern.
Would wait for share price to fall before investing (max 30x cash earnings).

(A Top Pick Nov 19/21, Down 38%) Surprised that company trading at such low multiple. Tech companies hit hard in selloff. Supply chain technology is in demand during Covid-19. Has sold shares.